We knew that Rocket Mortgage and Redfin were going to make deals when they got together.
And because the combined product serves both a financial and commercial real estate piece, home buyers can get big savings if they use both companies at the same time.
They recently announced a new joint offer that offers home buyers up to $20,000 in potential savings.
The program includes mortgage lender credits from Rocket and real estate commission savings from Redfin for those who buy (or sell) through a Redfin agent while financing with Rocket.
It’s the latest initiative to deliver value to customers after Rocket’s acquisition of Redfin last year, but before you jump in, take the time to shop!
Three Ways to Save With the New Rocket Mortgage/Redfin Promo
Let’s break down the new savings bundles, as there are actually three ways to save with this new joint promotion.
Buying with a Redfin Agent + Rocket Mortgage financing (new customers): Get a credit of 0.75% of the loan amount, up to $6,000.
This is actually accomplished through a combination of borrower credits and Redfin commission savings, although it appears to lower your closing costs and/or interest rate when used that way.
As long as you use a Redfin real estate agent, you can save some money.
My understanding is handle charging lower commissions than usual (eg less than 2.5-3%), so you can save even there.
But there is no guarantee and you will need to discuss that with the agent.
Buying + selling with a Redfin agent + Rocket Mortgage financing (new clients): Same borrower credit of 0.75%, but up to $12,000.
The next category is for new customers who use a Redfin agent to sell and buy a home, while using Rocket Mortgage.
That’s a little more to do with the same lender’s 0.75% credit, though it’s up to $12,000.
So if you buy a more expensive home and/or have a larger loan amount, the loan can go a little further.
Also, if a Redfin agent gives you a discount compared to traditional agents to buy and sell your home, that’s a plus I’d say. But double check on that.
Existing customers serving Rocket (~10 million customers currently): Credit up to 1.50%, up to $20,000 when you buy and sell through Redfin and finance through Rocket Mortgage.
The final category is for existing customers who service Rocket Mortgage loans (currently managing your loan payments and escrow account if applicable).
For these people, they offer a maximum loan amount of up to 1.50% of the loan amount, up to $20,000.
This is part of their initiative to recapture existing customers by offering them deals to stay in the home instead of going elsewhere when selling and buying a home.
That’s why Rocket bought Mr. Cooper and its large loan servicing book. They are good at getting customers and believe they can be good at keeping customers.
Instead of lender credits for closing costs, I believe you can opt for a 1% short term purchase rate for the first year. Although it may be more profitable to buy the price forever.
Also note that Rocket has another deal with Compass where home buyers can get a 1% down payment in the first year or a lender credit of up to $6,000 to reduce pre-closing costs.
This is available when you get financing from Rocket Mortgage AND work with a real estate agent from @properties, Better Homes and Gardens Real Estate, CENTURY 21, Christie’s International Real Estate, Coldwell Banker, Compass, Corcoran, ERA or Sotheby’s International Realty.
Is It Good Money?
Okay, let’s get down to the copper lines here. Is this a good deal or more trouble than it’s worth?
On the surface, it sounds pretty good. You get lender credits and potentially reduced real estate agent commissions if Redfin offers them.
However, there are caps and these caps mean that you need a larger loan amount to reach higher savings.
For example, on a $400,000 loan, the 0.75% credit is only $3,000. So it may not look as good as these top credits.
Plus, you’re stuck using Redfin and Rocket Mortgage real estate agents for your home loan needs.
Maybe you want to use a different, local agent that doesn’t work at Redfin. Or a different lender.
In addition, availability is limited to selected markets (make sure you check before proceeding), and the second activity (if you buy and sell) has a closing deadline of December 31, 2026.
So there may be hoops to jump through and you may feel a little stuck when you have to use all the companies at once.
But I think if you’re going to use Rocket Mortgage anyway, and a Redfin agent anyway, it would be a nice little perk.
However, my general rule of thumb is to always shop around as you may be able to get a better deal even if no specials are advertised.
For example, even without a lender’s credit, a different bank, lender, credit union, or real estate agent may offer a low rate loan with low closing costs to begin with!
But if you don’t take the time to collect a few quotes, you won’t know what else is out there
Certainly don’t assume that your existing lender or loan servicer has the best rate or lowest payments just because it’s convenient.
The important thing here is that it is a good incentive for the right type of home buyer who fits the criteria.
But you can get hung up on the $20K title without seeing what else is out there.
If it turns out to be a better deal, you can go back to it, but only after exploring other options.
