Buyers Choose Their Savings August 1 Through August 31
August 1, 2022
If you are purchasing a new home, you want to have choices. You want to choose your floor plan, elevation and upgrades. We think those choices should include how you save money on the purchase of your new home. And that is why our latest promotion offers three options that could save you tens of thousands over the life of your home loan.
During the Buyers Choice Sales Event, Aug. 1-31, Dallas-Fort Worth-area buyers who use our preferred lender and title company can choose from three money-saving options — paying no closing costs, an interest rate buy-down or an extended interest rate lock — when they purchase a new Coventry home.
What are these and how will one of them help you save? Take a look.
Closing costs refer to a variety of expenses above the purchase price, such as fees for an attorney, a title search, title insurance, taxes, lender costs and some upfront housing expenses like homeowner’s insurance. They do not include the down payment. They are due when you sign the final paperwork and receive the keys to your new home.
In Texas, closing costs average about 3.5 percent of the cost of a home. For a $650,000 home, closing costs can run about $22,750. One of the choices we are offering is to pay your closing costs. That means signing the paperwork and picking up your keys without writing a big check.
Interest rates are on the rise, but you can lower it by choosing an interest rate buy-down.
An interest rate buy-down allows you to pay a little extra money known as “points” upfront to get a lower interest rate. The benefits are that you will save money on your monthly payment, you’ll pay less interest over the life of your loan, and you might qualify for a higher mortgage because your interest rate will be lower.
Normally, points are paid at closing. During our sales event, we will pay the points for you!
Locking an interest rate means your interest rate won’t change between the time you sign your contract and closing if you close within a specified time period, usually between 30 and 90 days. Think of it as an insurance policy. If rates rise before you close, you won’t be on the hook for them. On the other hand, if interest rates drop, your locked-in rate won’t.
However, if your home is being built, you might not close on time and your interest rates could rise. That’s where an extended lock comes into play. Your rate is capped instead of locked so if interest rates drop, your rate can still be lowered.
There is usually a cost associated with extended interest rates. This is a percentage of the purchase price, and it is due at closing. During the promotion we pay the cost, so you won’t have to.
Any of these three translate into less money paid at closing and more money in your wallet to do other things.