Interest rates have been on the rise this spring, and the Federal Reserve Board has hinted it will increase the Federal Funds Rate several more times this year in an effort to tame inflation. The increases leave homebuyers in a quandary. Monthly house payments are higher with increased rates, so purchasing an existing home can be tough. Uncertainty about how high rates will go makes purchasing a home that’s still under construction feel like a gamble. One way to solve this problem is through an interest rate buydown program.
Peachtree Residential and its preferred lenders are coming to the rescue. They are offering an interest rate buydown program to homebuyers who write new contracts between August 1, 2022, and December 31, 2022.*
All presales and quick move-in homes in active Peachtree Residential communities in metro Atlanta and Charlotte, North Carolina, are included in the program at no extra cost to the consumer.
“Our special rate lock buydowns mean home shoppers can purchase more home for their money. Most homebuyers will save hundreds to many hundreds of dollars a month on a 30-year fixed mortgage,” commented Dave Borreson, President, Peachtree Residential.
How does the buydown program work? Buydowns reduce mortgage interest costs for homebuyers by reducing the loan rate for a set period. And lower interest rates translate to lower monthly payments, as well as a lower overall cost over the life of the loan.
In this case, Peachtree Residential and its preferred lenders are offering from two to three points off, depending on the loan type and the lender used. Since the buydowns are available for either conventional 30-year mortgages or jumbo loans, almost all buyers will be able to find a plan that works for them.
Still, some borrowers may hesitate to purchase a presale home during days of rising rates. They may fear that interest rates will increase before their home’s construction is complete and the final financing is in place.
For these scenarios, Peachtree Residential is offering an extended rate lock program. Buyers can lock in their current rate for one to two years**, so there’s plenty of time to complete construction and keep the locked rate, even if with delays. And if the home still isn’t finished on time? The rate lock can be extended with no penalties!
“We are taking the stress away on presale purchases with long term rate locks. Even if the supply chain slows, our buyers are covered,” states Borreson.
Peachtree Residential has been building new homes in Atlanta and Charlotte for more than three decades. Offering a variety of traditional and farmhouse home plans, they are popular for their large open floorplans, natural light, connectivity to nature and energy efficiency. Known as “The Builder Who Listens,” Peachtree Residential builds quality homes with meticulous craftsmanship, custom designs, and thoughtful touches that add to homeowners’ quality of life.
Peachtree Residential currently builds in several Georgia counties: Fayette, Forsyth, Fulton, Paulding and Gwinnett. Peachtree also builds in Gaston, Iredell, Cabarrus and Mecklenburg counties in Charlotte, North Carolina.
The fine print:
* Offer valid on new contracts only written between August 1 and December 31, 2022. Subject to errors, omissions, changes or withdrawal without notice. Reach out to any Peachtree Residential sales associate for more information or click here.
**Special extended rate lock program only available with certain preferred lenders, see agent for details.