Quicken Loans Rate Drop Advantage Review

June 2, 2011 No Comments »

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Quicken Loans, the nation’s largest online mortgage lender, has a unique feature called the “Rate Drop Advantage.”

Let’s take a closer look.

In short, the program will pay most of your closing costs if you take out a purchase money mortgage or refinance loan with Quicken and then refinance with them again within seven years.

It’s a play on the fact that “average American” moves or refinances every seven years.

Essentially, Quicken wants you to refinance now without having to worry about subsequent mortgage rate drops in the future.

So if you refinance now and mortgage rates fall, you can refinance again to take advantage of that rate drop with minimal mortgage-related closing costs.

What closing costs does Quicken pay?

Appraisal Fee
– TSI Appraisal Services
– Credit Report
– Tax Certification Fee
– Recording Fees
– Flood Life of Loan Fee
– Notary Fees
– Flood Certification Fee
Processing Fees

To qualify for the Quicken Loans Rate Drop Advantage, you must close a mortgage with Quicken Loans by December 31, 2012.

The same loan must be refinanced between 120 days after close to 84 months after close.

It’s only valid once per mortgage with the same property address only.

And you must qualify per full credit and underwriting guidelines, so if you lose your job or your credit score goes down the tubes, you’d probably be out of luck.

Final Word

If you’re going to refinance with Quicken Loans anyways, it’s a cool feature. But the chance of mortgage rates going any lower, at least significantly, is probably doubtful, given they’re at historic lows.

And not everyone wants to serially refinance – some people are looking to gain home equity and pay off the mortgage.

Additionally, it always pays to shop around to ensure you get the best mortgage rate, instead of picking one company for a feature you may or may not actually use.

*As with any product review, contact the company directly to ensure the above is still accurate, as terms change constantly.

Tip: What mortgage rate can I expect?

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