Why It Made the Cut: Rocket Mortgage may be a great option for home buyers considering an FHA loan, as the company offers an initial rate reduction, extended rate-lock option, and an exclusive rewards program.
Rocket Mortgage offers a variety of perks that may appeal to home buyers looking to secure an FHA loan. For instance, the company’s “Inflation Buster” promotion can help make the initial costs of a mortgage more manageable by lowering a borrower’s mortgage rate by 1 percentage point for the first year of their home loan. This offer will effectively reduce the monthly payments on an FHA loan at the outset due to the temporarily lower interest rate. Another potential cost-saving feature is the company’s lengthy rate-lock option, which will guarantee a borrower’s mortgage rate for 90 days. This may appeal to home buyers who are still looking for the right property but are concerned about rates going up by the time they are ready to make an offer.
Borrowers can also reduce their out-of-pocket closing costs on a home loan by taking advantage of Rocket Mortgage’s dedicated rewards program. Members can earn rewards points by exploring the company’s site, creating a user account, reading educational materials, and using online mortgage calculators, among other activities. They can then redeem their points to lower the closing costs on their mortgage. When trying out those mortgage calculators, customers will want to take note that listed FHA rates are based on home loans with mortgage points, which may not reflect a borrower’s own financing terms. Other digital tools, such as the company’s dedicated mobile app, are very user-friendly, allowing borrowers to manage their home loans and even apply for a new mortgage or refinance an existing one through their mobile device.
- Coverage area: 50 states and Washington, D.C.
- FHA loan types: Fixed-rate, streamline refinance, cash-out refinance, FHA 203(k)
- FHA loan terms: 15 or 30 years
- Prequalification process: Online, phone
- Application process: Online, phone, app
- 90-day rate-lock option
- 1 percent rate reduction for first year
- Rewards program points redeemable toward closing costs
- Convenient mortgage application and management via mobile app
- Somewhat misleading mortgage rate calculator