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