Yes, you receive a Reduced Rate on a FIXED rate mortgage for the first three years and if the rates go down, We will refinance you at NO Cost to you at the lower rate.
This is how it works: With this program, you have the security of a FIXED 30-year loan at 5.99% apr BUT the first year your rate is only 2.99%, the second year 3.99%, the third year 4.99% and for the rest of the loan term it is 5.99%
See the example below based on rates on 1/11/2023 and on a $500,000.00 loan:
The difference in the cost of the rate can be paid by the seller, the builder or yourself. The amount in this example would be $21,757.67. THE GOOD NEWS is that if you refinance or sell before the end of the third year and you have not used all the funds to buy down the rate, those funds are refunded to you. In the example above, if you refinance 18 months after you closed your loan with us, you would receive a refund of $7,424.41!