Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

EarnIn launches Early Pay for paychecks | PaymentsSource

March 21, 2025

How to Retire Like an Adult: An 11-Point Checklist for Responsible Freedom

March 21, 2025

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
InCapital Direct
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
InCapital Direct
Home»Mortgage»RocketRentRewards Offers 10% Back on Rent to Use Toward Closing Costs on a Home Purchase
Mortgage

RocketRentRewards Offers 10% Back on Rent to Use Toward Closing Costs on a Home Purchase

February 18, 2025No Comments5 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
RocketRentRewards Offers 10% Back on Rent to Use Toward Closing Costs on a Home Purchase
Share
Facebook Twitter LinkedIn Pinterest Email

In a bid to help more renters make the leap to homeownership, Rocket Mortgage has launched a new program called “RocketRentRewards.”

As the name suggests, you can now earn rewards simply for paying your rent each month.

Specifically, renters get 10% of their rent for the past 12 months as a credit toward closing costs.

For example, if you currently pay $2,000 per month, you’ll get $2,400 for a year’s worth of rent.

This amount can then be applied to closing costs on your mortgage to reduce your out-of-pocket expenses.

How RocketRentRewards Works

Rocket Rent Rewards

In order to take part in this new program from Rocket Mortgage, you simply need to be a renter who applies for a home loan with Rocket.

Once you apply, Rocket will look at your rent payments from the past 12 months that can be verified with documentation (another important reason to not pay cash!)

After confirming your current rental amount, they will multiple that amount by 12 and then give you 10% of that total.

For example, they cite a national average rent of $1,800 per month, which translates to $21,600 annually.

If we take 10% of that amount, it’d be $2,160, which could then be applied toward your mortgage closing costs.

There is a limit of $5,000 offered via this program, meaning the credit caps out at a monthly rent of about $4,200.

But the rent could theoretically come from multiple properties if you happened to move in the past year because they consider all rental payments over the last 12 months.

Typical closing costs include things like the loan origination fee, underwriting and processing fees, title insurance, home appraisal, and so on.

See also  Is This Mortgage Rate Scare Going to Get Home Buyers Off the Fence?

These amounts can add up in a hurry, and when combined with a down payment, can prove to be a major barrier to homeownership.

In the release, Rocket noted that “renter households have grown rapidly” since 2020, now accounting for over a third of homes in the United States.

And nearly half of renters are people of color, about twice the rate of homeowners, according to a Joint Center for Housing Studies of Harvard University report.

The company believes RocketRentRewards can help bridge the gap, especially in underserved communities, which will represent more than half of first-time home buyers by the year 2030, per a recent Fannie Mae study.

Good Deal or Not? It Depends…

This is a nice new perk for those looking to make the move from renting to owning, but as always, we need to determine if it’s a deal or not.

To determine this, you’ll need to compare all the components of a mortgage offer, including the mortgage interest rate, closing costs, and any applicable credits.

In this case, you could earn up to $5,000 in closing cost credits, but you’ll need to look at the net closing costs.

For example, if closing costs are $10,000, you’d only pay $5,000 with the maximum renter credit.

Then you’d need to look at the mortgage rate, which we all know, the lower the better.

Mortgage companies can provide lender credits that reduce your out-of-pocket closing costs in exchange for a higher mortgage rate.

But if their rate is still lower, even with those costs absorbed, they’d be the better deal.

See also  Rocket Mortgage Canada winding down operations

So it’s important to look at the deal holistically to determine who is actually offering the best price.

This can be achieved more easily by looking at the mortgage APR, though make sure all fees are accounted for.

And as always, take the time to gather multiple mortgage rate quotes, since studies prove more quotes equal more savings.

Tip: You can earn points on rent with Bilt Mastercard and redeem the points at a value of 1.5 cents per point for a mortgage down payment!

Can This Be Used with Other Rocket Programs?

Another consideration is if RocketRentRewards can be used alongside other programs offered by Rocket.

For example, there’s the Rocket Rewards Loyalty Program, which allows users to complete certain activities for closing cost credits.

And Rocket’s BUY+ that offers a credit of up to $10,000 when you use a Rocket Homes Partner Real Estate Agent to find a home.

Not to mention the Rocket Visa Signature Card, which allows cardholders to earn 5% back toward a down payment on a home purchase.

I also wonder if this can be used in conjunction with Rocket Mortgage ONE+, which is their 1% down mortgage that uses a 2% grant to get to a 3% down payment, the minimum required for a conforming loan backed by Fannie Mae.

Assuming you can combine some or all of these offers, Rocket might be hard to beat. But as noted, other banks and lenders offer similar perks, credits, and grants as well.

So put in the time to shop around as you would any other purchase. And even more time since it’s a home purchase!

See also  Is Home Equity Lending Really That Crazy Today?

Read on: How to reduce closing costs on your mortgage.

Colin Robertson

Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.

Colin Robertson
Latest posts by Colin Robertson (see all)

Source link

closing costs Home Offers purchase rent RocketRentRewards
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleOCC’s Hood floats raising SAR threshold, revising HHI index
Next Article Here’s how to reduce capital gains on your home sale

Related Posts

Where Would Mortgage Rates Be Today If Kamala Harris Won?

March 21, 2025

One issue looms as Capital One’s megadeal hits home stretch

March 20, 2025

Why America Is Returning To Home Cooking (Again)

March 20, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

How to get Perkins Loan forgiveness in 2024

October 20, 2024

Trump picks Ken Kies for key tax policy job at Treasury Department ahead of tax cuts push

January 4, 2025

Cantero ruling takes center stage in Illinois swipe fee suit

October 31, 2024
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

EarnIn launches Early Pay for paychecks | PaymentsSource

March 21, 2025

How to Retire Like an Adult: An 11-Point Checklist for Responsible Freedom

March 21, 2025

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 incapitaldirect.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.