By TYRONE TOWNSEND
Leaders at Rocket Mortgage have launched a new program that will cover a sizable portion of closing costs for a refinance transaction if interest rates drop and their customer refinances within three years of purchasing a home.
Applicants with credit scores as low as 580 will be considered, in contrast to other mortgage lenders who need a minimum of 620. Leaders at the company say this offers a choice for potential homebuyers with bad credit.
John Perich, Director of Public Relations of Rocket Central, spoke with the Mortgage Note about the Rate Drop Advantage.
“People might want to buy a house, and if you want to buy a house now, go ahead and get it,” Perich said. “We’ll help with the rate shield to keep it steady while you’re shopping for a house.”
He added that Rocket Mortgage is unveiling new products such as the home equity loan to help consumers navigate the current economy by working with the company.
Through his tenure on the Quicken Loans PR team and previous internships, Perich has garnered both in-house and agency expertise.
“Our competitors are not offering rate drop advantage. A lot of our products are grounded in technology you could use. We have a lot of partnerships with financial companies and insurance companies like State Farm. If a client wants to get a mortgage, they can pass them along to Rocket Mortgage, and they can get discounts and closing costs,” Perich said.
According to the press release about Rate Drop Advantage, Rocket Mortgage will forgo the fees for the appraisal and credit report pulls, processing, underwriting, and various other expenditures when customers refinance within the given timeframe, resulting in an average savings of almost $2,000.
Rocket Mortgage is located in Detroit and is part of Rocket Companies. Last year, the company completed $351 billion in mortgage volume in the United States.
This year, Rocket Companies landed seventh on Fortune’s list of the “100 Best Companies to Work For.”
Household debt reached $15.84 trillion at the end of the first quarter, up $1.7 trillion from the end of 2019, according to a study from the Federal Reserve Bank of New York.
The research also revealed that credit card balances increased by $71 billion from 2021 to the first quarter.
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