Rocket Mortgage has announced the introduction of Rate Drop Advantage, a new program that covers a significant portion of a refinance transaction’s closing costs if interest rates drop and buyers 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, a release stated. Rocket Mortgage says Rate Drop Advantage gives buyers confidence in the midst of a rising rate environment by knowing if rates decrease within the three-year period after closing on their original purchase, 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 Bob Walters, CEO of Rocket Mortgage. “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.”
Homebuyers benefit in both the short- and long-term with the combination of Rate Drop Advantage and Rocket Mortgage’s existing RateShield program. With RateShield, a buyer has 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, the company stated.
The company notes that Rocket Mortgage 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. 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 debt. Homebuyers with a verified approval letter from Rocket Mortgage are nearly twice as likely to close on their mortgage.
For more information, visit RocketMortgage.com/Learn/RateShield-Rate-Drop-Advantage.