Get Big Savings on Your Mortgage with American Express

Getting a mortgage loan is one of the biggest financial decisions you’ll make in your life. As you shop around for the best mortgage rates and terms you want to make sure you’re getting the best deal possible. If you’re an American Express cardholder you now have an exciting new way to save thousands on your mortgage.

American Express recently announced partnerships with two top mortgage lenders – Better Mortgage and Rocket Mortgage. This opens up a great money-saving opportunity for Amex cardholders looking to buy a home or refinance their mortgage. Keep reading to learn more about how this offer works and how much you could potentially save.

Overview of the American Express Mortgage Savings Offer

The basics of the offer are straightforward. If you have an eligible American Express personal credit card and you get a mortgage through either Better Mortgage or Rocket Mortgage, you can earn a statement credit of either:

• $2,000 for a conforming loan
• $6,000 for a jumbo loan

A conforming loan is for $647200 or less. A jumbo loan exceeds that amount.

To qualify, you need to have an eligible personal Amex card such as the Platinum Card or the Blue Cash Preferred. Corporate cards and cards issued by other banks don’t count.

You’ll get the statement credit after you close on the mortgage loan. Just make sure your Amex account stays open until the credit posts.

Huge Savings That Most Credit Cards Don’t Offer

Credit card lenders like Amex regularly offer statement credits and other perks for spending in certain bonus categories. But a discount this large on a mortgage is almost unheard of.

For example, let’s say you get approved for a $300,000 conforming loan at 3% interest over 30 years. That’s a total cost of $443,767 in interest alone over the life of the loan. By getting $2,000 cash back through this Amex offer, you’ve offset 0.45% of the interest costs.

On a jumbo loan of $750000 at 3% over 30 years, you’d pay $1109,418 in interest. A $6,000 statement credit takes 0.54% off the total interest expense.

As you can see, this is a valuable discount when you consider the size of most mortgage loans. It’s like getting an interest rate that’s 0.45% to 0.54% lower, just for being an American Express cardholder.

Maximize Your Savings by Comparing Lenders

An important thing to note is that the discount applies regardless of the specifics of your mortgage. As long as it’s through Better or Rocket Mortgage, you get the cash back as advertised.

You should still compare rates and fees between lenders to make sure you’re getting the best deal overall. Between Better and Rocket Mortgage, see which one offers you lower closing costs, interest rates, and other charges.

Then, apply through that lender to get the Amex discount stacked on top of your other mortgage savings.

Running the numbers with both lenders also ensures you don’t miss out if one has a particularly good discounted rate or closing cost deals at the moment. Mortgage rates and terms are constantly shifting, so checking with both partners gives you flexibility.

Get Pre-Approved to See Your Full Savings

The fastest way to find your total mortgage costs – and American Express savings – is to get pre-approved with both lenders. Here are the steps:

1. Gather your financial documents like bank statements, tax returns, and W-2s.

2. Go to Better.com and RocketMortgage.com to fill out their online pre-approval forms.

3. Submit your documents when requested.

4. Review the loan estimates from both lenders. This breaks down all your estimated fees and costs.

The loan estimates will show your down payment amount, projected interest rate, origination fees, and other charges. Plugging this info into a mortgage calculator also shows your monthly payment.

From there, you can get quotes on different loan amounts, terms, and down payments. Then just subtract $2,000 or $6,000 to see your savings from the Amex offer.

Smart Homebuying Tip: Pay Down Debt First

As you go through the mortgage pre-approval process, lenders will examine your debt-to-income ratio. This compares your monthly debt payments to your gross monthly income.

The lower your DTI, the better mortgage terms you can qualify for. As a general rule, good DTI for mortgage approval is 36% or less.

Paying down credit cards, auto loans, and other debts improves your DTI. This helps you afford a larger loan amount to buy the house you want.

If you have American Express cards carrying balances, focus on paying those down aggressively first. This opens up “mortgage power” on future loan applications by lowering your DTI.

Plus, you should have your credit cards cleared out before applying for a mortgage anyway. Lenders don’t like to see borrowers with high card balances taking out more debt.

Check if Refinancing Could Earn the Max $6,000 Credit

The American Express offer includes both mortgage refinancing and home purchase loans. If you already have a mortgage, refinancing could potentially score you the higher $6,000 statement credit.

Here are two scenarios where refinancing with Better or Rocket Mortgage can trigger the jumbo loan credit:

You Have an Existing Conforming Loan

Say you obtained your mortgage when home prices were lower in your area. Now, you want to tap into your home equity for a renovation project.

By refinancing to a higher loan amount, you may cross the conforming loan limit and qualify for the $6,000 Amex credit.

You Refinance into a Shorter Term

Refinancing into a 15-year mortgage from a 30-year can also push your loan over the conforming limit, even if you keep the amount borrowed the same.

This is because the 15-year loan requires higher monthly payments. The lender has to qualify you at that higher payment level, which reduces the maximum size of a conforming loan you can qualify for.

Crunching the numbers on a refi into a shorter term mortgage could reveal opportunities to earn the higher Amex credit tier.

Act Soon – This Offer Ends in 2022

As with most special credit card promotions, this American Express mortgage discount is time-limited.

Here are the important dates:

• For Better Mortgage, rate lock must happen by 9/13/22 and close by 12/17/22.

• For Rocket Mortgage, apply by 10/2/22 and close by 1/5/23.

So if you’re looking to buy a home or refinance in the latter part of 2022, start pre-approvals now. aim to have your loan finalized in the fall at the latest to qualify for this Amex deal.

You Can Stack Savings with Other Mortgage Deals

Beyond the American Express offer, there are a few other ways you may be able to stack on additional mortgage savings:

• Lender Credits: Many lenders offer credits towards closing costs as incentives. These range from $500 to $2,000 typically.

• Seller Contributions: You can request the seller pays some closing fees. This usually ranges from 3% to 6% of the home price.

• Rate Match Guarantees: Mortgage lenders will often match or beat a competitor’s rate if you get an official loan estimate.

The process of “rate shopping” by comparing loan estimates guarantees you the lowest rate. Stack this with the Amex discount for maximum savings.

• Down Payment Assistance: First-time homebuyer programs like FHA loans allow down payments as low as 3.5%. VA and USDA loans go even lower to 0% down.

Combining a low down payment mortgage with the Amex offer saves you money upfront and over the long run.

Owning a Home Has Many Financial Benefits

There are many good reasons to take the plunge into homeownership. Taking advantage of this American Express offer can make it more affordable.

Beyond just the satisfaction of owning your own place, being a homeowner has powerful financial benefits including:

• Equity building: Your monthly mortgage payments build equity that you can tap in the future via home equity loans or lines of credit. Renting doesn’t build equity.

• Appreciation: Real estate values tend to appreciate over decades of ownership. The median home price is up 121% in the last 20 years.

• Tax savings: Mortgage interest and property taxes are tax deductible. This can save homeowners thousands per year.

• Stable payments: Mortgage payments don’t rise over time like rent can. This makes financial planning easier.

• Lower rates: Today’s low mortgage rates may start increasing. Locking in a low rate now could save tens of thousands long-term.

• Passive income: Renting out rooms or units can generate monthly rental income.

Owning a home clearly has financial upsides beyond just having