When looking to buy a home in this current market, there can be real estate phrases thrown around that are confusing to understand. McCall Homes is here to help empower you with the knowledge to better understand the new home buying process, and how it is much more simple than it seems. Whether you are a first time home buyer, realtor, or an investment expert this education is for everyone. 

To save you money, McCall Homes has partnered with preferred lenders to give you the tools to make home ownership a reality. The first step in offering these tools is buyer education. 

How is McCall Homes able to save you hundreds per month on your home? By working with you to build a personalized financial step up in the form of rate buydowns, closing costs, prepaid options and more.  

What are Rate Buydowns?

A mortgage buydown allows you to temporarily reduce the interest rate on your home loan for the first few years depending on the type of buydown. 

McCall Homes contributes funds to an escrow account that subsidizes the loan during the first years, resulting in a lower monthly payment on the mortgage for you, the home buyer. 

The goal is to make the mortgage more affordable while interest rates are higher. 

Most buydowns last for a few years, then the mortgage payments increase to a standard rate once the buydown expires. 

A 2-1 mortgage buydown is a common structure lenders can use. A 2-1 buydown's discount is only available for the first two years of owning your home. So you would have a 2% interest rate reduction for the first year of the mortgage, then a 1% rate discount for the second year of the mortgage. Your interest rate—and your monthly payments—would increase over time until your loan reaches its actual percentage rate. This happens in year three of the loan. At this point, your monthly mortgage payment would reflect the true loan rate. You would pay up front for the 2-1 buydown at closing, and, theoretically, the money that you save over the first two years would cancel out that payment.

After the buydown period has expired, the opportunity for refinancing is available. Due to the current rate climate, the time for rates to stabilize after two years is highly likely. You can then capture and lock in a more desirable rate. 

Rate buydowns are only one of the tools we are offering to make new homeownership a reality. Our team is here to help you find the best fit for you to get into the new home of your dreams. Click here for more on rate buydowns.

What are Closing Costs?

Closing costs are the fees and charges in excess of the purchase price of the property due at the closing of a real estate transaction. 

Getting a mortgage isn’t free. Throughout your home purchase, third parties—such as your mortgage lender—have performed services. These fees may include fees related to the origination and underwriting of a mortgage loan, real estate commissions, taxes, and insurance premiums, as well as title and record filings. Closing costs typically range from 3%–6% of the loan amount. 

McCall Homes can provide you an amount to use to cover a portion of closing costs. This would help reduce the burden of upfront cash needed to enter homeownership. 

Click here for more on closing costs.

What are Prepaid Options?

Prepaid options are items that are paid in advance for a specific amount of time. Such as HOA dues, home insurance and mortgage insurance. During the final phase of a mortgage loan processing (commonly referred to as the closing), you will receive a detailed disclosure statement listing all the costs related to the property purchase. 

McCall Homes can provide an amount that would reduce the upfront cost of prepaid options associated with your mortgage.

What does this mean for you?

All of these incentives are to get you into the home you love. Whether that is at a lower interest rate, lesser closing costs or with your later home options prepaid, partnering with preferred lenders offers you stable financing solutions.

This personalized incentive program is for YOU, because we are FOR you. The home you choose to live in is one of the biggest decisions of your lifetime, and McCall Homes does not take that lightly. Empowering people and building community regardless of where you are in life is the very heartbeat of McCall Homes. Here, you'll live in a neighborhood where community is a verb. We make it easy to build a home that fits you AND your budget, so that you can finally feel rooted in a home you love.

Click here to connect with our team, and create the best home incentive program for you!