Introduction
Rocket Mortgage, a subsidiary of Rocket Companies and formerly known as Quicken Loans, is one of the largest online mortgage lenders in the United States. Known for its digital-first approach and customer-centric services, Rocket Mortgage has revolutionized the way Americans apply for home loans. However, when it comes to home equity loans—a key financial product for homeowners—many people are unsure whether Rocket Mortgage offers them. This article explores the home equity options provided by Rocket Mortgage, including alternatives like cash-out refinancing and HELOCs (Home Equity Lines of Credit), and provides a deep dive into how homeowners can tap into their home equity through Rocket Mortgage in 2025.
Understanding Home Equity Loans
Before diving into what Rocket Mortgage offers, it’s important to understand what a home equity loan is.
What Is a Home Equity Loan?
A home equity loan allows homeowners to borrow against the equity they’ve built up in their home. The equity is calculated by taking the current market value of the home and subtracting any outstanding mortgage balance. These loans usually come with fixed interest rates and are disbursed as a lump sum.
Key Features:
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Lump sum disbursement
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Fixed interest rate
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Set repayment period (often 5–30 years)
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Typically used for large expenses such as home renovations, debt consolidation, or education
Rocket Mortgage: Company Overview
Rocket Mortgage is a trailblazer in the fintech mortgage lending space. Since its founding, the company has aimed to simplify the mortgage process with technology. It offers a wide range of mortgage-related products and has gained popularity for its online application process, fast approvals, and high customer satisfaction ratings.
Mortgage Products Offered:
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Conventional loans
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FHA loans
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VA loans
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Jumbo loans
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Cash-out refinance
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Rate-and-term refinance
But what about home equity loans? Let’s explore.
Does Rocket Mortgage Offer Home Equity Loans?
The Short Answer: No, But…
As of 2025, Rocket Mortgage does not offer traditional home equity loans. However, the company provides cash-out refinancing—a powerful alternative that allows homeowners to tap into their home equity by refinancing their mortgage for a higher amount than what they owe and taking the difference in cash.
So while Rocket Mortgage doesn’t offer a true home equity loan, it offers cash-out refinance options that serve a similar purpose.
What Is Cash-Out Refinance?
A cash-out refinance replaces your existing mortgage with a new one for more than you owe on your home. You receive the difference in cash, which can then be used for home improvements, paying off debt, or other financial needs.
Key Features:
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Requires sufficient home equity (usually at least 20%)
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One mortgage payment (no second lien like with a home equity loan)
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May have lower interest rates compared to personal loans
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Interest may be tax-deductible if used for home improvements
How Cash-Out Refinancing Works with Rocket Mortgage
Rocket Mortgage has a streamlined online platform that allows homeowners to easily apply for a cash-out refinance. Here’s how it works:
1. Application Process
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Visit the Rocket Mortgage website or use their app
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Submit an online application (employment, income, home details)
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Consent to a credit check
2. Home Appraisal
An appraisal is typically required to determine the current value of your home and calculate the amount of equity you can access.
3. Loan Approval and Disbursement
Once approved, the existing mortgage is paid off and the homeowner receives the difference in cash, usually via direct deposit.
4. Repayment
You begin making monthly payments on the new mortgage amount, which includes the amount borrowed through the refinance.
Pros and Cons of Cash-Out Refinancing
Pros:
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Lower Interest Rates: Compared to personal loans or credit cards
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Lump Sum Access: Receive large sums of money
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Single Loan: Only one monthly payment
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Flexible Use: Pay for renovations, education, medical bills, etc.
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Tax Advantages: May be deductible under certain conditions
Cons:
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New Loan Terms: You’re resetting the clock on your mortgage
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Closing Costs: Typically 2%–5% of the loan amount
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Risk of Foreclosure: You’re increasing your debt secured by your home
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Not Ideal for Short-Term Needs: Better suited for long-term investments or consolidations
Home Equity Loan vs. Cash-Out Refinance: What’s the Difference?
| Feature | Home Equity Loan | Cash-Out Refinance |
|---|---|---|
| Loan Type | Second mortgage | Replaces existing mortgage |
| Interest Rate | Fixed | Fixed or adjustable |
| Disbursement | Lump sum | Lump sum |
| Loan Term | Fixed (5–30 years) | Depends on refinance terms |
| Closing Costs | Yes | Yes |
| Risk | Second lien on home | Replaces existing lien |
| Offered by Rocket? | No | Yes |
Why Rocket Mortgage Chooses Cash-Out Refinance Over Home Equity Loans
1. Operational Efficiency
As a fully digital mortgage lender, Rocket Mortgage streamlines its offerings around its core infrastructure. Cash-out refinancing aligns more closely with its existing mortgage systems and processes.
2. Customer Simplicity
Managing a single mortgage is often simpler for homeowners. With a home equity loan, borrowers are taking on a second loan with another payment. Rocket Mortgage avoids this complexity by promoting cash-out refinancing.
3. Lower Risk for Lenders
Since the primary mortgage is replaced, Rocket Mortgage assumes less risk compared to offering a second lien loan product like a traditional home equity loan.
Alternatives to Home Equity Loans with Rocket Mortgage
If you’re looking for ways to tap into your home equity but prefer options other than cash-out refinancing, here are a few routes to consider:
1. HELOC (Home Equity Line of Credit)
Rocket Mortgage currently does not offer HELOCs. However, they are available through other lenders. HELOCs work like credit cards, offering a revolving line of credit based on your home equity.
2. Personal Loans
While these don’t tap into home equity, personal loans from other providers may offer quick access to cash with less paperwork—but often at higher interest rates.
3. Refinancing through Partner Lenders
Some Rocket-affiliated services or competitors may offer HELOCs or home equity loans. You can use Rocket’s mortgage calculator and refinancing tools to compare scenarios.
Who Should Consider a Rocket Mortgage Cash-Out Refinance?
Cash-out refinancing through Rocket Mortgage is best for:
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Homeowners with significant equity (20% or more)
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Those who want to consolidate debt at lower interest rates
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People planning large home renovations
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Borrowers seeking lower interest rates than personal loans offer
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Homeowners who plan to stay in the home long-term
Eligibility Requirements
To qualify for a Rocket Mortgage cash-out refinance, you typically need:
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A credit score of at least 620 (higher preferred for better rates)
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Sufficient home equity (ideally at least 20%)
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Stable income and employment history
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A low debt-to-income (DTI) ratio
Rocket Mortgage evaluates each applicant on a case-by-case basis. Using their online prequalification tool can help determine if you’re eligible without a hard credit inquiry.
Rocket Mortgage’s Digital Advantages
Rocket Mortgage has carved out a niche by making mortgage services accessible, fast, and digital. Here’s how they stand out:
1. Online Tools
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Refinance calculators
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Loan comparison dashboards
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Real-time rate updates
2. Mobile App
Manage your refinance, submit documents, and track your loan process from your phone.
3. Customer Support
Available by phone or chat, Rocket Mortgage has high satisfaction ratings for its responsive customer service.
Is a Cash-Out Refinance Right for You?
It depends on your financial goals.
Ideal Scenarios:
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You have built up enough equity in your home
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You want to consolidate high-interest debt
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You plan to invest in long-term renovations
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Your current mortgage rate is higher than the current market rate
Not Ideal If:
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You don’t have enough equity
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You’re planning to move soon
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You want to keep your existing mortgage rate
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You only need a small amount of money quickly
Real-Life Example
Case Study: Jane and John’s Kitchen Remodel
Jane and John own a home worth $450,000 with a remaining mortgage of $270,000. They want to remodel their kitchen, estimated to cost $50,000.
Using Rocket Mortgage’s cash-out refinance:
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They refinance for $320,000
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Pay off the old $270,000 loan
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Receive $50,000 in cash
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Start paying the new loan at a fixed 5.75% rate over 30 years
Their monthly payments increase, but the lower interest rate and one-loan structure make it manageable. They avoid using credit cards or personal loans, saving significantly on interest.
Conclusion
While Rocket Mortgage does not offer traditional home equity loans as of 2025, it provides a robust alternative through cash-out refinancing. For homeowners with adequate equity and long-term financial goals, Rocket Mortgage’s cash-out refinance is a practical, digitally streamlined solution to unlock the value of their homes.
With a user-friendly platform, transparent processes, and competitive rates, Rocket Mortgage continues to lead in innovation—even if it doesn’t offer every product on the market. For those who prefer a traditional home equity loan or HELOC, other lenders might be better suited. But for simplicity, speed, and integration with existing mortgage services, Rocket Mortgage is an excellent option to consider.