America’s largest mortgage lender, Rocket Mortgage, is going to put a smile on a lot of borrowers’ faces with the announcement of its Rate Drop Advantage — an exclusive program that it says will bring confidence to homebuyers by covering a significant portion of closing costs of a refinance transaction if interest rates drop and they refinance within three years of purchasing a home.
Through Rate Drop Advantage, when clients refinance within the allotted time frame, Rocket Mortgage will waive the fees for appraisal, credit report pulls, processing, underwriting, and several other costs, for an average savings of approximately $2,000. Rocket said this will inspire confidence in a rising rate environment by allowing borrowers to know that when rates eventually fall in the next three years, they can easily and affordably refinance.
“Rocket Mortgage is committed to creating more ways to make the financing process easier and more affordable for homebuyers and maintain the excitement that should come along with this huge milestone in their life,” said Rocket Mortgage CEO Bob Walters. “Innovation comes in many different forms — Rocket Mortgage is known for both our revolutionary technology and the creativity we bring to help meet the needs of our clients, like Rate Drop Advantage, RateShield, and our Verified Approval. We are constantly listening to our clients, implementing their feedback and developing programs that meet and exceed their needs.”
The combination of Rate Drop Advantage and Rocket Mortgage’s existing RateShield program provides home buyers benefits in the short- and long-term, the company said. For the past four years, Rocket Mortgage said, its clients have used RateShield to gain confidence and stability while shopping for a home. Interest rate increases can cause your home purchase budget to change from day to day.
With RateShield, American homebuyers get access to a powerful two-way benefit, the company said. A buyer will have the ability to lock in current rates for up to 90 days while home shopping, providing a hedge against rising rates. If rates have fallen by the time the purchase agreement is signed, the buyer will receive the lower rates. This option has been wildly popular with prospective homebuyers in today’s volatile rate environment, the company said.
Rocket said it is also taking an innovative approach to mortgage approvals. Buyers can receive an exclusive Verified Approval to know the exact amount they qualify for and the assurance that their finances are ready to close on a mortgage, the company said. Far beyond a prequalification or a preapproval, a Verified Approval is based on an underwriter’s comprehensive analysis of a buyer’s credit, income, employment status, assets, and debts. Homebuyers with a Verified Approval Letter from Rocket Mortgage are nearly twice as likely to close on their mortgage, the company said.
To learn more about these programs, visit RocketMortgage.com/Learn/RateShield-Rate-Drop-Advantage.
