Detroit-based Rocket Mortgage, the nation’s largest mortgage lender and a part of Rocket Cos., has launched Inflation Buster, a new program giving homebuyers a reprieve by reducing their monthly mortgage payment 1 percentage point for the first year of their loan.
The lower rate is accomplished through a special escrow account established and fully funded by Rocket Mortgage. 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,” says Bob Walters, CEO of Rocket Mortgage. “The Inflation Buster pairs perfectly with the 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.”
As an example, a homebuyer with a $400,000, 30-year fixed mortgage with 5.75 percent interest would traditionally pay $2,334.29 in principal and interest. With Rocket Mortgage’s Inflation Buster lowering the client’s payment by 1 percentage point for the first year, however, the payment would drop more than 10 percent to $2,086.59. The homeowner in this illustration would save a total of $2,972.40 in the first year of their loan.
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, according to the company.
This lower payment will be automatically provided to any Rocket Mortgage clients who apply for a conventional, FHA, or VA purchase loan. The company also is extending the offer to mortgage brokers’ clients through Rocket Pro TPO, with funding coming from the real estate agent or home seller.