Coldwell Banker Home Loans Content
August 2008
Homebuyers May Save Money by Protecting Their Rate Now
Homebuyers may find big savings by locking in their mortgage interest rates now, according to a recent article in CNNMoney.com.1 The mortgage market is more volatile now than during the housing boom, when rates were holding steady between 5½ percent and 6½ percent. According to a panel of experts surveyed in early August by Bankrate.com, interest rates could go as high as 7 percent by the end of the year. 1
I can talk with you now about Pre-Purchase Rate Protection.
As a real estate professional, I know that affordability is a critical factor in the home buying process. Even a half point rise in interest rates can result in a significant increase in a homebuyer’s monthly mortgage payment and impact how much they can spend on a new home.
That’s why we give every customer the opportunity to enroll in Pre-Purchase Rate Protection (PPRP) as soon as they receive a mortgage pre-approval decision from us. PPRP is a service that safeguards our customer’s interest rate against market fluctuations and gives them the option to lock in a lower rate if rates drop.* Our customers register even before they find a property and sign a contract to buy.
When our customers sign up for PPRP, we’ll cap their interest rate according to where rates are at that time.
- No matter how high rates go, they won’t pay more than the capped rate
- If rates go down, they’ll have a one-time opportunity to “float down” and lock in a lower rate before closing*
We want to make sure our customers take advantage of this free service before rates rise again. Our Pre-Purchase Rate Protection Scenarios Sell Sheet explains the benefits of this service. Contact me about Pre- Purchase Rate Protection. We’ll give you a free, same-day loan decision, guaranteed!
Our customizable Pre-Purchase Rate Protection Scenarios Sell Sheet and other valuable tools are available for order at www.CBHLMortgageResourceCenter.com.
1. Christie, Les. “Time to Lock in Your Mortgage Rate.” CNNMoney.com—August 4, 2008. © Copyright 2008 Cable News Network LP, LLP.
*Not available on all products. Ask us for details. If the loan is canceled for any reason, we reserve the right to charge a cancellation fee as permitted by state law. Loans may be locked in at a lower rate once a property has been selected and the lock occurs between five and 60 days prior to closing.
www.sandrathomassells.com