Toll Bros. Offers 3.99% Fixed Mortgage Deal

Real Estate Agent with Chinowth & Cohen Realty

Toll Bros. Offers 3.99% Fixed Mortgage Deal

Luxury home builder Toll Brothers last week began offering a 3.99 percent fixed-rate mortgage for loans $417,000 or below for 30 years with no points.

The rate is well below the national average of slightly less than 5 percent and lower than most other builders are offering.

"We're curious to see how many [deals] it generates," says Don Salmon, president and chief executive of TBI Mortgage Co., Toll's mortgage subsidiary.

Other builders haven't immediately followed suit, but "it's definitely something that if they haven't considered it already, they will," said Brent Anderson, vice president of investor relations for Meritage Homes Corp., which doesn't have a mortgage subsidiary.

Centex Corp. and Lennar Corp. have bought down mortgages, offering buyers 3.5 percent for the first two years. The rate then locks in at 4.5 percent.

Source: The Wall Street Journal, Dawn Wotapka (01/22/09)

**My stepson and his wife just purchased a home for 3.5% for first year and it locked in at 5.75% here in Owasso. Some great deals out there.

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Comments (3)

Mike Russell
Mike Russell & Associates - Overland Park, KS
Overland Park Kansas Real Estate

that's smart, Hovnanian did a 30k price reduction weekend last year in NJ and had a lot of home contract.

Jan 26, 2009 03:50 AM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors

That would make me think twice about moving.  If I could get a rate fixed for 30 years in the 3's imagine how much more I could afford?

Jan 26, 2009 03:56 AM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

I think this is smart.  It's one way of making houses more affordable.  I just hope they only lend to those who qualify.

Jan 26, 2009 05:36 AM