One man's loss is another man's gain. This is the case with Dallas home buyers who are interested in buying a home built by luxury home builder Toll Brothers.
Recently, Toll Brothers started offering a 3.99 percent fixed-rate mortgage for loans $417,000 or below for 30 years with no points.This rate is well below the national average of slightly less than 5 percent and lower than most other builders are offering.
The plan is to entice Dallas home buyers to get off the fence and sign on the dotted line, but it remains to be seen how many sales the lower interest rate will generate.
A $400,000 30-year fixed rate loan at 3.99 percent versus a loan at 5% will save you $240 per month on your mortgage payment and save you a total of $86,382 in interest overall...quite a savings!
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.
Are you a Dallas home buyer wanting to take advantage of this opportunity? Please call me at 972-562-0896 and I will be happy to help you find the Toll Brothers home of your dreams.
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