Rocket Mortgage announced the introduction of Rate Drop Advantage, a new program that covers a significant portion of the closing costs of a refinance transaction if interest rates drop and buyers refinance within three years of purchase of a house.
With Rate Drop Advantage, when customers refinance on time, Rocket Mortgage will waive appraisal, credit report retrieval, processing, underwriting, and several other costs for an average savings of approximately $2 $000, according to a statement. According to Rocket Mortgage, Rate Drop Advantage gives buyers confidence in the midst of a rising rate environment knowing that if rates go down within three years of closing 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 to maintain the excitement that should come with this important milestone in their lives,” said Bob Walters, CEO from Rocket Mortgage. “Innovation comes in many different forms – Rocket Mortgage is known both for its ground-breaking technology and for the creativity we bring to help meet the needs of our customers, such as Rate Drop Advantage, RateShield and our Verified Approval We are constantly listening to our customers, implementing their feedback and developing programs that meet or exceed their needs.
Homebuyers benefit both in the short and long term from 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 when shopping from home, providing coverage against rising rates. If rates have dropped at the time of signing the purchase agreement, the buyer will receive the lower rates, the company said.
The company notes that Rocket Mortgage is also taking an innovative approach to mortgage approvals. Buyers can receive 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 pre-approval, 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 their mortgage.
For more information, visit RocketMortgage.com/Learn/RateShield-Rate-Drop-Advantage.