Rocket Mortgage launched a new program aimed to combat inflation for homebuyers by reducing their monthly mortgage payment one percentage point for the first year of their loan.
Inflation Buster offers the lower rate 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,” said Bob Walters, CEO of Rocket Mortgage. “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.”
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 the new program, their payment would drop more than 10% to $2,086.59, according to Rocket Mortgage, saving the homebuyer a total of $2,972.40 in the first year of their loan.
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.