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The lower rate is accomplished through a special escrow account established and fully funded by Rocket Mortgage, he explained. During the first 12 months, the homeowner will make the reduced mortgage payment and Rocket Mortgage will cover the difference automatically.
“Rocket Mortgage is committed to creating solutions to combat today’s high inflation, making home purchases more affordable,” Bob Walters, CEO of Rocket Mortgage, said in a prepared statement. “The Inflation Buster pairs perfectly with Rate Drop Advantage program which covers many of the costs to refinance when interest rates fall. Combined, these put buyers in the driver’s seat with unmatched benefits.”
Read more: Rocket ups limits for conventional loans
Company officials provided an example: A homebuyer with a $400,000, 30-year fixed mortgage with 5.75% interest would traditionally pay $2,334.29 in principal and interest. With Rocket Mortgage’s Inflation Buster lowering the client’s payment by one percentage point for the first year, however, their payment would drop more than 10% to $2,086.59. The homeowner in this case would save a total of $2,972.40 in the first year of their loan.
Company officials noted that Rocket Mortgage is giving homebuyers more flexibility in their payment for the first year – a time when they are usually buying new furniture, décor, making improvements or customizing the home to fit their style. This lower payment will be automatically provided to any Rocket Mortgage clients who apply for a conventional, FHA or VA purchase loan. The company is also extending the offer to mortgage brokers’ clients through Rocket Pro TPO, with funding coming from the real estate agent or home seller.
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