Most lenders charge fees, but some charge higher fees than others. Lenders with no origination fee often make up for it by charging borrowers a higher interest rate. Here’s what Rocket Mortgage charges.
Rocket Mortgage charges around $1,200 for mortgage processing and underwriting. The appraisal and other services from different vendors will add to your closing costs, as is the case with any mortgage. With any lender, you’ll be able to evaluate the fees for your specific loan on your loan estimate before you commit, and there will be certain mortgage services you can shop for to look for lower fees.
Rate Lock Fees
Rocket Mortgage will lock your rate for 15, 45, 60 or 90 days, with some restrictions. Rocket Mortgage offers a five-day lock extension that costs 0.125 points ($125 per $100,000 borrowed) and a 15-day extension that costs 0.25 points ($250 per $100,000 borrowed). Rocket Mortgage allows up to two 15-day extensions.
Once you’ve locked your rate with Rocket Mortgage, there’s no standard float-down option. This means that if rates drop after you lock your rate, you’d have to cancel your application and start over with a new lender, delaying your closing. Some lenders do offer a float-down option, and you’ll often pay a fee to exercise it.
If you’re still shopping for a home and want to lock your rate so you know exactly how much house you can afford, you can use Rocket Mortgage’s Rate Shield program. For a fee of 0.75 basis points ($750 per $100,000 borrowed), you can lock your rate for 90 days without a purchase agreement. If interest rates are lower when you go under contract, Rocket Mortgage will float your rate down.
Rocket Mortgage does not charge prepayment penalties, which is typical for first mortgages on a primary residence. Rocket Mortgage also does not charge borrowers any monthly payment fees on its loans.