DETROIT, August 26, 2024 – Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies (NYSE: RKT), introduced “Welcome Home RateBreak,” a lender-paid 2-1 temporary buydown program. This initiative allows buyers to benefit from a mortgage rate reduced by two percentage points in the first year and one percentage point in the second year before reverting to the note rate in the third year.
“Welcome Home RateBreak” is available to homebuyers who apply directly to Rocket Mortgage or through a mortgage broker partnered with Rocket Pro TPO. Eligibility requires purchasing a single-family home with an income equal to or less than 80% of their area median income (AMI). Rocket Mortgage estimates that over 90 million people could benefit from this program.
“Rocket is committed to creating and delivering unique programs that address the challenges homebuyers face today,” said Bill Banfield, Chief Business Officer and Economist. “Many buyers fear being stretched too thin during the early years of homeownership, especially as they consider the cost of new furnishings and special touches to make the new home their own. By lowering the interest rate for the first two years, ‘Welcome Home RateBreak’ provides financial breathing room, giving consumers the confidence to enter the market and make their homeownership dreams a reality.”
This offering is particularly beneficial for first-time homebuyers, who comprised only 29% of home sales in June—down from 50% in 2010—according to the National Association of Realtors. This decline highlights an urgent need for programs that support new buyers.
For example, a homebuyer with a $250,000 loan at a 6.99% rate (APR 7.399%) would typically pay $1,661 per month. With “Welcome Home RateBreak,” their first-year rate would be 4.99%, reducing payments to $1,340 per month. In the second year, the rate would be 5.99%, with payments of $1,497 per month. Afterward, payments return to the original 6.99% rate for the remainder of the loan term, resulting in over $5,800 in savings during those initial two years.
The lower rate is achieved through a special escrow account established and fully funded by Rocket Mortgage. During the first 24 months of the loan term, homeowners will make reduced monthly mortgage payments while Rocket Mortgage covers any difference automatically. The homeowner remains responsible for taxes and insurance premiums.
This latest initiative from Rocket Mortgage is part of broader efforts to enhance affordability and simplify paths to homeownership. Other programs include ONE+, which reduces upfront costs by allowing clients to make down payments as low as 1% of purchase prices while Rocket Mortgage covers an additional 2%.
Visit RocketMortgage.com for more information on “Welcome Home RateBreak” or apply for a home loan directly on their platform. Mortgage brokers can contact an account executive for further details about participating in this program.
ABOUT ROCKET MORTGAGE
Detroit-based Rocket Mortgage is part of Rocket Companies (NYSE: RKT) and holds its position as America's largest mortgage lender.
The company facilitates American dreams of homeownership through industry-leading digital experiences introduced since its founding in 1985 when it became known for launching fully digital online mortgages by late 2015. J.D Power has ranked it #1 in client satisfaction across primary mortgage origination and servicing categories multiple times—a record unmatched by other lenders—and its parent company consistently places high on Fortune's "100 Best Companies to Work For" list annually.