Rocketrentrewards offers 10% return to the rent to be used for the fence of costs on a home purchase Loaner

In order to help more tenants jump to property, Rocket Mortgage has launched a new program called “Rocketrentrewards”.

As its name suggests, you can now earn rewards simply to pay your rent every month.

More specifically, tenants obtain 10% of their rent in the last 12 months as credit for the fence of costs.

For example, if you are currently paying $ 2,000 a month, you will get $ 2,400 for a year of rent.

This amount can then be applied to the fence costs of your mortgage to reduce your personal expenses.

How Rocketrentrewards works

In order to participate in this new Rocket Mortgage program, you just have to be a tenant asking for a mortgage with Rocket.

Once you apply, Rocket will examine your rent payments of the last 12 months which can be verified with the documentation (another important reason not to pay liquidity!)

After confirming your current rental amount, they will multiply this amount of 12, then give you 10% of this total.

For example, they cite an average national rent of $ 1,800 per month, which results in $ 21,600 per year.

If we take 10% of this amount, it would be $ 2,160, which could then be applied to your mortgage fences.

There is a limit of $ 5,000 offered via this program, which means that the credit takes place at a monthly rent of around $ 4,200.

But the rent could theoretically come from several properties if you had moved in the past year, because they consider all rental payments in the last 12 months.

Typical fence costs include things such as loan creation costs, subscription and processing costs, securities insurance, home assessment, etc.

These amounts can be added in a hurry and, when combined with a deposit, can prove to be a major obstacle to home ownership.

In the press release, Rocket noted that “households of tenants have developed quickly” since 2020, now representing more than a third of the houses in the United States.

And almost half of the tenants are people of color, about double the rate of owners, according to a spouse center for housing studies Harvard University Report.

The company estimates that Rocketerntrewards can help fill the gap, especially in poorly served communities, which will represent more than half of house buyers for the first time by 2030, according to a recent study by Fannie MAE.

A good deal or not? It depends …

It is a new pleasant advantage for those who seek to switch from rental to possession, but as always, we must determine whether this is an agreement or not.

To determine this, you will have to compare all the components of a mortgage offer, including the mortgage interest rate, closing costs and applicable credits.

In this case, you can gain up to $ 5,000 in fence cost credits, but you will need to examine net fence costs.

For example, if the fence costs are $ 10,000, you only pay $ 5,000 with the tenant’s maximum credit.

Then you have to examine the mortgage rate, which we all know, below is best.

Mortgage companies can provide loan credits that reduce your direct closing costs in exchange for a higher mortgage rate.

But if their rate is even lower, even with these absorbed costs, they would be the best deal.

It is therefore important to consider the agreement in a holistic way to determine who really offers the best price.

This can be done more easily by examining the mortgage mortgage, but make sure that all costs are taken into account.

And as always, take the time to bring together several mortgage rate quotes, because studies prove more quotes equal more savings.

Advice: You can earn points on the rent with Bilt Mastercard and exchange points at a value of 1.5 cents per point for a mortgage deposit!

Can this be used with other rocket programs?

Another consideration is whether Rocketerntrewards can be used alongside other programs offered by Rocket.

For example, there is the Rocket Rewards loyalty program, which allows users to complete certain activities to close cost credits.

And Rocket’s Buy + which offers a credit of up to $ 10,000 when using a Rocket Homes partner real estate agent to find a house.

Not to mention the Visa Rocket signature card, which allows card holders to recover 5% to a deposit on a house purchase.

I also wonder if this can be used in conjunction with Rocket Mortgage One +, which is their 1% mortgage which uses a subsidy of 2% to reach a deposit of 3%, the minimum required for a loan supported by Fannie Mae .

Assuming that you can combine some or all these offers, Rocket could be difficult to beat. But as indicated, other banks and lenders also offer advantages, credits and similar subsidies.

So devote time to going around as you would buy any other purchase. And even more time because it is a purchase of a house!

Read more: How to reduce fence costs on your mortgage.