Howard Hanna has the answer.SM
We all know that interest rates have been on the rise, but that doesn’t have to get in the way of you buying your dream home. With our Rate Reducer program through Howard Hanna Mortgage Services, you can temporarily lock in a lower interest rate so you can lower your monthly payments for the first two years of homeownership.
This way, you can move now and start building equity for the future and potentially refinance at a later date when rates decrease.
What Is a Buydown?
When you’re ready to buy, you can ask your Howard Hanna realtor to negotiate a buydown into your purchase agreement. If the seller or the builder of your property accepts the agreement, they will cover the cost difference between your standard payment and the adjusted bought-down rate.
Here’s how it breaks down*:
- Year one: Your mortgage payment is 2% below your 30-year rate. For example, if your 30-year APR interest rate is 5.853% (5.934% APR) during the first year, your bought-down interest rate will effectively be 3.853%.
- Year two: Your mortgage payment is 1% below your 30-year rate at 4.853%.
- Year three and beyond: Your rate will return to the same format it would have been otherwise, 5.853%. PLUS, you may also have the opportunity to refinance, potentially at a lower interest rate.
What Are the Benefits?
With Rate Reducer, buyers can take advantage of a range of appealing benefits, including the ability to enjoy lower monthly payments for the first two years of homeownership.
At Howard Hanna, we’re committed to helping you find the home you’ve always wanted. We can guide you through every step in the real estate transaction, and we’ll answer all of your questions along the way.
If you’re interested in enrolling your home in our Rate Reducer program, contact a Howard Hanna agent near you. Our agents are ready to explain more about the program and provide you with all the information you need to make the best choice for you and your home.
Howard Hanna Mortgage Services NMLS# 101561. Terms and conditions apply. Example based on $375,000 purchase price 7.356% APR, $300,000 loan amount, 30 year fixed rate loan with 20% down payment. Year one interest is 5.25%, monthly payment is $1,656.61. Year two interest is 6.25% monthly payment is $1,847.15. Year three and beyond interest rate is 7.25% and monthly payment of $2,046.53. Taxes and insurance premiums not included—actual payment obligation will be greater. APR is based on secondary market conditions and subject to change. Effective November 10, 2022. Contact Howard Hanna Mortgage Services for mortgage products and eligibility. Offer of credit is subject to credit approval. Howard Hanna Mortgage Services is licensed by: The Pennsylvania Department of Banking and Securities as a Mortgage Lender – License number 21415. The Ohio Department of Commerce – Division of Financial Institutions – License number RM.804531.000. The Michigan Department of Licensing and Regulatory Affairs, Office of Financial and Insurance Regulation, First Mortgage Broker/Lender License number FL0022570, Second Mortgage Lender Registration number SR0022571. The West Virginia Division of Banking – License number ML-20884. The North Carolina Office of the Commissioner of Banks – License number L-215626. The State of South Carolina State Board of Financial Institutions – Mortgage Lender/Servicer License number MLS-101561. Contact a Howard Hanna Mortgage Loan Originator for full details. PA – 1000 Gamma Drive – Pittsburgh, PA 15238. OH and MI – 6000 Parkland Blvd. – Mayfield Hts., OH 44124. (800) 400-4622. mortgage@howardhanna.com.
