A new product to pay off high-interest credit card debt will be offered to millions of users of Rocket’s personal finance app, Truebill.
Rocket Companies has a new product to market to millions of users of its personal finance app, Truebill – home equity loans.
The rocket is throw subsidiary Rocket Mortgage’s new home equity loan as “one more way to pay off debt that has risen with inflation” as Federal Reserve interest rate hikes drive up the cost of a card balance credit. Although mortgage rates are also up, topping 6% in June, credit card issuers often charge double-digit interest rates.
According to latest data Federal Reserve credit card and other revolving debt fell from $973 billion in the first quarter of 2021 to $1.11 trillion in May. Thanks in part to astronomical appreciation in house prices, Americans have about 10 times more workable equity in their homes – about $11 trillion or $207.00 per owner, according to real estate data aggregator Black Knight.
Fed data shows that credit card users who carried a balance in their account paid an average interest rate of 16.65% in May, compared to 15.9% in the first quarter of 2021. Even personal loans are often a better deal with rates on 24-month loans averaging 8.73% in May, according to the Fed.
Now, Rocket can offer consumers who want to consolidate high-interest debt at lower rates the option of taking out a home equity loan or a personal loan.
Rocket subsidiary Rocket Loans offers personal loans from $2,000 to $45,000, while Rocket Mortgage’s new home equity loan allows homeowners to take out fixed rate loans from $45,000 to $350,000 over 10 or 20 years.
“Our goal is to consistently create financial products that help our clients achieve their goals,” Rocket Mortgage CEO Bob Walters said in a statement. “In today’s market, short-term interest rates have risen sharply, making it much more difficult to pay off credit card debt. With our new home equity loan, customers can improve their lives by getting a payment they can more comfortably afford.”
Both products will be offered to users of Rocket’s personal finance app, Truebill, which Rocket acquired in December for $1.27 billion. Truebill, which will be rebranded as Rocket Money in August, had 3.4 million users as of March 31, and Rocket hopes to attract even more consumers to the app by offering free premium accounts to 2.6 million Rocket Mortgage customers.
The nation’s largest home loan provider, Rocket Mortgage closed $351 billion in mortgage volume across all 50 states in 2021 from loan origination centers in Detroit, Cleveland and Phoenix.
But as rising interest rates crippled its mortgage business, Rocket repositioned itself as a fintech platform, with a stable of related businesses.
- Central spindle: A centralized hub for fintech platform Rocket Cos. providing technology, accounting, legal services, public relations and human resources. It is formerly known as Rock Central.
- rocket houses: A real estate brokerage and research portal that allows consumers to search multiple listing service data for homes, connect with a real estate professional, and get mortgage approvals through Rocket Mortgage.
- ForSaleByOwner.com: An online marketplace for consumers to buy or sell properties on their own, offering financing through Rocket Mortgage.
- Amrock: A national provider of title insurance, real estate appraisals and settlement services and “Preferred Provider” to Rocket Mortgage.
- Amrock Title Insurance Co. : A nationwide title insurer, providing underwriting services to the national title insurance agent, Amrock.
- automatic rocket: A virtual market where consumers can buy cars offered by a network of dealers.
- LowerMyBills.com: An online comparison service for mortgages, credit cards, insurance, loans, home services and personal finance.
- Basic digital media: A digital, social and display advertiser generating leads for mortgage, insurance and education providers.
- Nexys Technologies: Software solutions to streamline, digitize and automate mortgage processes.
- Rock connections: A sales and support platform providing contact center services including appointment booking, customer pre-qualification, lead and effectiveness consulting, lead generation, reporting and analysis.
- Rocket Innovation Studio: Recruit and mentor technology talent to meet the needs of Rocket companies.
- Woodward Capital Management: An issuer of private label mortgage-backed securities, providing funding for loans issued by Rocket Mortgage.
- Lendesk: A Canadian mortgage technology provider of products to digitize and simplify lending.
- Edison Financial: A Canadian digital mortgage company that uses Lendesk’s Spotlight as a platform for lender submissions. Edison Financial will rebrand Rocket Mortgage later this month.
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Email Matt Carter