Rocket plays the long game with his interest rate Rewards program

And although this is not the lowest percentage on the market – the current Rocket’s current 30 years of fixed rate Is 7,125%-there is no customer-commanded marking.

“We offer this option on all our conventional or FHA or VA products. There is no Markup, “said Banfield. “We give this back to the consumer while we try to do Outreach to ensure that people know what their options are.”

Banfield also confirmed that there is currently no cap or end date for the program.

“We will perform it as long as it makes sense, and if we have to make adjustments at a later time, we will, but at the moment nothing is planned,” he said.

“We want to recognize those who can make their rental payments on time,” he added. “And then we came up with the idea of ​​the rental rewards. If you looked through the country, the average rent is somewhere around $ 1,800 a month. And that means that our contribution to closing costs is slightly less than $ 2,200, and we take it back from our income effectively and give it back to the buyer. “

Banfield said Rocket plays the long game with tenants and has a long life in the eye.

“I would think that every reasonable lender will look at the lifelong value of the customer, and we just think about what unfolds since the pandemic in the way people may rent – either for flexibility or because they feel trapped Sitting through it – that this is a path to think about homeowner and generating generation. “

Mike Cush, a freelance mortgage starter adviser, said that the investment of Rocket in tenants will probably also cause future refinancing.

“Tenants often think they should get credit for paying rent, and Rocket does that. Will they probably come back to a cross-sell or the next loan? Yes. Will this customer leave them middle processing? No. A compliment for rocket. They sell what people buy, “Cush said.

Others in the industry have tried to have programs that are comparable to Rocket’s. American financial resources (Af) has DPA benefit, which is designed to offer buyers to a down payment increase in the form of a subsidy equal to 2% to 3.5% of the purchase price of the house.

DPA benefit, however, is offered by a government agency and can only be used with the FHA 203 (B) standard program or a FHA renovation program offered by AFF.