The nation’s number one lender, Rocket Mortgage, has launched a new loyalty program called “Rocket Rewards.”
Similar to other loyalty programs, consumers can earn rewards for completing certain activities.
And those points can be redeemed for closing cost credits if and when they become Rocket Mortgage clients.
To get started, those who create a free Rocket account and visit the rewards page will receive a 7,500-point welcome bonus.
Existing Rocket account holders can also snag the 7,500 points when they complete their first rewards activity.
How Rocket Rewards Works
The Rocket Rewards program is a new initiative by Rocket Mortgage to engage potential customers who might apply for a home loan in the future.
Members of the Rocket Rewards program can earn points by reading educational articles or watching videos in the Rocket Mortgage learning center.
Points can also be banked simply by using a mortgage calculator on their website, and you can apparently earn points up to 10 times for each calculator.
The Your Activities page will show you what’s available, whether it’s an article or a calculator, working on a loan application, or something else.
As noted, new members can earn 7,500 just for signing up and visiting the rewards page.
Those points are good for $75 in closing cost credit, which can offset closing costs on your loan.
Over time, you can accrue more and more points to potentially save hundreds off your closing costs.
There is no cost to join, and once you create a Rocket Account, you’ll automatically be enrolled in their rewards program. The points also do not expire.
What Can Rocket Rewards Be Used For?
At the moment, Rocket Rewards can be redeemed for credit toward your closing costs on a Rocket Mortgage loan.
Each point appears to be worth a penny, so for every 10,000 points you earn, you’ll have $100 worth.
This is similar to many credit card rewards programs that generally redeem at a penny apiece.
Once you accrue a good amount of points, you’ll be able to redeem them. It’s unclear if there’s a minimum redemption amount.
But either way, you’ll be able to see what you can use your rewards points for if you visit the My Rewards page on their website.
For example, if you have a few thousand dollars in closing costs, thanks to say a home appraisal, title insurance, and so on, some of those costs can be offset.
And if there’s more than one person on your mortgage, you can combine your points for up to $10,000 per loan.
Of course, you’ll have to use Rocket Mortgage to get your home loan to actually redeem the points.
In the future, they say they’ll “be adding more things you can redeem your points for.” It’s unclear what, but it might give you options beyond closing cost credits.
For those who don’t apply for a mortgage, their points might be worth something outside the mortgage realm.
But right now, they can’t be redeemed for cash or anything beyond closing costs associated with a Rocket Mortgage loan.
It should also be noted that Rocket Rewards points could be considered taxable, similar to some credit card points or bank account rewards, at which point you might receive a 1099.
[See also: Rocket Mortgage Inflation Buster]
Is the Rocket Rewards Program a Good Deal?
While it’s nice to see a mortgage loyalty program, as they are few and far between, you need to consider the big picture.
That is, what the total cost of the mortgage is once you factor in the interest rate and closing costs, less any rewards.
For example, if another lender is offering no closing costs and the same rate, or a lower mortgage rate with comparable closing costs, it might be a better offer.
Even if you can offset closing costs, if the net price is higher, it might not mean a whole lot.
Of course, the program is free to join and generally earns points via educational articles and videos.
And I’m all for financial literacy, which gets way too little attention compared to just about everything else.
So if it’s a means to learning more about how mortgages work, it could beneficial regardless of whether the points are actually redeemed.
As always, take the time to obtain multiple mortgage quotes from different lenders to ensure you don’t miss a better deal.
You may also learn something each time to speak to a different party, whether it’s a mortgage broker, credit union, bank, or another direct lender.
Rocket Mortgage expects the Rocket Rewards program to strengthen its already strong brand loyalty, which had a net client retention rate of 93% over the past year ending June 30th, 2022.
(photo: Nicole Yeary)