How to Lower Your Interest Rate

Posted on September 21, 2023 in Mortgage FAQ's

Are interest rates holding you back from buying a new home right now? New Home Inc. has the solution to help you discover how to lower your interest rate. Lower your interest rate with our $20,000 mortgagerate buydownprogram. Use this opportunity to reduce your monthly payment by as much as $500 OR buy a home worth $80,000 - $100,000 more for the same payment!

What is a mortgage rate buydown?

Amortgage rate buydownallows borrowers to secure a lower interest rate by paying what’s known as “discount points” at their closing. Also called mortgage points or prepaid interest points, these points are a one-time fee that home buyers pay up-front. By doing so, you can achieve a lower interest rate for your loan term. For every 1% of the home loan you pay in discount points, you lower the rate by roughly 0.25%. If you’re obtaining a mortgage for $450,000, for example,  and your current interest rate is 7.5%, then $4,500 (1% of $450,000) lowers the rate to 7.25%.

With New Home Inc.’s program,you pay nothingto take advantage of the $20,000 buydown to help our homebuyers soar over the interest rate hurdle.

Why not just lower the purchase price of the home?

We studied the numbers. You’ll save more money over the term of your loan and a lower monthly payment by doing this mortgage rate buydown. Lowering the purchase price impacts theamount you borrowwhile you also reduce the interest rate delivers long-term savings on theamount you pay.

For example, you want to buy a new home that’s priced at $450,000. With10% down payment, your loan amount is $405,000. With a 7.5% interest rate on a 30-yearfixed rate mortgage, your monthly payment would be $2,832 per month*.

If you applied New Home Inc.’s offer to lower your interest rate with our $20,000 mortgage rate buydown, the interest rate is reduced to 5.75% with the same down payment and 30-year term. And your monthly payment drops to $2,264—a savings of $568 per month. That’s $6,816 a year and $204,480 over the term of the loan. Isn’t that more financially appealing than a $20,000 discount up front?

Upgrade with a buydown

You could also use the New Home Inc.’s $20,000 rate buydown to increase the purchase price you qualify for. Your lender determines how much home you can afford to buy based on your creditworthiness to repay the debt. Maybe you can afford the $2,832 monthly payment in the above scenario. With the lower interest rate, you can raise your purchase price, as much as $100,000.

A home priced at $550,000 with a $20,000 rate buydown equates to a monthly payment of $2,889 (10% down, 30-year fixed rate). Compare that to $3,462 without the buydown advantage! Imagine how much more you can get in your new home with this extra spending power—like a bigger home and more features.

But you don’t pay for more features with New Home Inc!

New Home Inc. takes pride in the lasting value of our new homes for sale near Raleigh. OurFuture-Proofapproach to design and building includes features that other home builders in Raleigh NC haven’t considered. Ourincluded featuresgive you more to begin with, including:

So, when you decide to lower yourinterest rate with our $20,000 mortgage rate buydown program, you’re not putting it toward features that we think you shouldn’t pay extra to get!

How to choose the best builder for your new home

How do youchoose the best builder for your new home? As you review your choice of home builders in Raleigh, NC, look at the bigger picture of what you’re getting. We’ve built our business on the philosophy that truly serving our homebuyers is the only way to succeed. We’ve explored ways to give more, to be better, and to earn your trust. 

The offer to lower yourinterest rate with our $20,000 mortgage rate buydown program is available in all of ourcommunities, on new contracts for to-be-built single-family homes and townhomes. New Home Inc. is buildingnew homes for sales near Raleigh, inAngier,Apex,Fuquay-Varina,Lillington, andSmithfield—desirable Raleigh suburbs, each with their own unique character and offerings. You can see ourfloor plansand take avirtual tourfor each and every one. Thencontact usfor more information about how you can stretch your homebuying budget.

From September 8 to September 30, on new contracts, New Home Inc is delighted to offer a fantastic opportunity for you. We will contribute up to $20,000 towards decreasing your interest rate or covering your closing costs when you choose our preferred lender, Towne Bank*. This amazing offer is available on both our inventory homes and to-be-built opportunities. Don't miss out on this incredible chance to make your dream home a reality.

*Based on a 30-year fixed rate with 10% down and a sales price of $450,000. Financing example based on seller paid $20,000 rate buydown.

TowneBank Mortgage NMLS # 512138. This is being provided for informational purposes only and is not a commitment. New Home Inc. is not a mortgage lender and so you should contact TowneBank Mortgage directly to learn more about its mortgage products and your eligibility for such products. Rates and program are subject to change due to unforeseen market conditions, borrowers credit profile and eligibility requirements. All payments, monthly principal, interest, taxes, and insurance are based on 360 monthly payments. APR stands for Annual Percentage Rate. Total obligation could be higher. This is not a commitment to lend.