Rocket Mortgage, part of Rocket Companies, recently introduced a home equity loan that will provide Americans with one more way to pay off debt that has risen along with inflation.
Americans are grappling with high credit card bills—driven by a combination of rising prices, and record-high credit card rates resulting from the Federal Reserve’s aggressive rate increases. This combination has consumers looking for options to make their monthly payments more manageable.
“Our goal is to consistently create financial products that help our clients achieve their goals,” said Bob Walters, CEO of Rocket Mortgage. “In the current market, short-term interest rates have risen sharply—making it much harder to pay off credit card debt. With our new home equity loan, clients can improve their lives by having a payment they can more comfortably afford.”
In total, Americans have nearly $28 trillion in home equity, according to the Federal Reserve. At the same time, the country’s total household debt stood at $15.84 trillion as of Q1 2022—$1.7 trillion higher than at the end of 2019, before the COVID-19 pandemic—according to a report from the Federal Reserve Bank of New York. The report also showed that credit card balances in Q1 were $71 billion higher than in 2021.
Homeowners can access $45,000 to $350,000 of their home’s equity in 10- or 20-year term, fixed-rate loans—while maintaining at least 10% equity in their home. Consumers looking for smaller loan amounts can secure $2,000 to $45,000 from sister company Rocket Loans.
“Rocket’s talented technology, product strategy and capital markets team members came together quickly to develop this important mortgage product, demonstrating the power of the tech platform at Rocket Companies,” Walters said.
For more information visit RocketMortgage.com/PressRoom.