Rocket Mortgage Launches New Home Equity Loan, Giving Homeowners Another Option to Combat Rising Prices and Consumer Debt

Rhea-AI Summary

Rocket Mortgage has launched a new home equity loan aimed at helping Americans manage rising debt and inflation. This loan allows homeowners to tap into between $45,000 and $350,000 of their home equity through fixed-rate loans over 10 or 20 years, maintaining at least 10% equity. As of Q1 2022, U.S. household debt reached $15.84 trillion, with credit card balances up by $71 billion compared to 2021. Rocket Mortgage, the largest mortgage lender in the U.S., highlights this product as an essential solution for consumers seeking affordable payment options amidst challenging economic conditions.

Positive

• Launch of a new home equity loan to help consumers manage rising debt and inflation.
• Homeowners can access substantial equity ($45,000 to $350,000) with fixed-rate loans.
• Rocket Mortgage was able to leverage its technology and product strategy rapidly to create this solution.

Negative

• Credit card debt in the U.S. is rising significantly, indicating financial strain on consumers.
• Total household debt reached an alarming $15.84 trillion as of Q1 2022.

- New loan option could be the perfect way to manage inflation and rising debt levels -

DETROIT, Aug. 1, 2022 /PRNewswire/ -- Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies (NYSE: RKT), today introduced a home equity loan to give Americans one more way to pay off debt that has risen along with inflation.

Americans are grappling with high credit card bills – driven by a combination of rising prices, and record-high credit card rates resulting from the Federal Reserve's aggressive Fed funds rate increases. This combination has consumers looking for options to make their monthly payments more manageable.

"Our goal is to consistently create financial products that help our clients achieve their goals," said Bob Walters, CEO of Rocket Mortgage. "In the current market, short-term interest rates have risen sharply - making it much harder to pay off credit card debt. With our new home equity loan, clients can improve their lives by having a payment they can more comfortably afford."

In total, Americans have nearly $28 trillion in home equity, according to the Federal Reserve. At the same time, the country's total household debt stood at $15.84 trillion as of Q1 2022 – $1.7 trillion higher than at the end of 2019, before the COVID-19 pandemic – according to a report from the Federal Reserve Bank of New York. The report also showed that credit card balances in Q1 were $71 billion higher than in 2021.

Homeowners can access $45,000 to $350,000 of their home's equity in 10- or 20-year term, fixed-rate loans – while maintaining at least 10% equity in their home. This new product fits well into the Rocket platform, providing a financial solution no matter the need. Consumers looking for smaller loan amounts can secure $2,000 to $45,000 from sister company Rocket Loans.

"Rocket's talented technology, product strategy and capital markets team members came together quickly to develop this important mortgage product, demonstrating the power of the tech platform at Rocket Companies," Walters said.

Homeowners can connect with Rocket Mortgage's Home Loan Experts at 800-704-9733 to learn more about this product.

About Rocket Mortgage

Detroit-based Rocket Mortgage, the nation's largest home mortgage lender and part of Rocket Companies (NYSE: RKT), enables the American Dream of homeownership and financial freedom through its obsession with an industry-leading, digital-driven client experience. In late 2015, it introduced the first fully digital, completely online mortgage experience. Rocket Mortgage closed $351 billion dollars of mortgage volume across all 50 states in 2021.

Rocket Mortgage moved its headquarters to downtown Detroit in 2010. The company generates loan production from web centers located in Detroit, Cleveland and Phoenix.

Rocket Companies, Rocket Mortgage's parent company, ranked #7 on Fortune's list of the "100 Best Companies to Work For" in 2022 and has placed in the top third of the list for 19 consecutive years.

For more information and company news visit RocketMortgage.com/PressRoom.

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SOURCE Rocket Mortgage

FAQ

What is the new loan option introduced by Rocket Mortgage?

Rocket Mortgage has launched a home equity loan to help consumers manage rising debt and inflation.

How much home equity can homeowners access with the new loan?

Homeowners can access between $45,000 and $350,000 of their home's equity.

What are the terms for the new home equity loan from Rocket Mortgage?

The new home equity loan offers fixed-rate terms of 10 or 20 years.

What is the current state of household debt in the U.S.?

As of Q1 2022, total household debt in the U.S. stood at $15.84 trillion.

How is Rocket Mortgage addressing consumer debt issues?

Rocket Mortgage's new home equity loan aims to provide consumers with affordable payment options amidst rising debt levels.