Welcome to Cascade Mortgage Services!
We’re thrilled to introduce Temporary Rate Reductions, a smart way to make homeownership more affordable during the initial years of your loan.
What Are Temporary Rate Reductions?
Temporary rate reductions lower your mortgage interest rate for the first few years of the loan. This means smaller monthly payments during the initial period, giving you financial flexibility as you settle into homeownership or allocate resources to other priorities.
How Do Temporary Rate Reductions Work?
Rate Reduction Structure
The interest rate is reduced for a specified period, commonly 1, 2, or 3 years, depending on the plan. Examples include:
3-2-1 Reduction: The rate is reduced by 3% in the first year, 2% in the second year, and 1% in the third year before stabilizing at the standard fixed rate.
2-1 Reduction: The rate is reduced by 2% in the first year and 1% in the second year.
Funding the Reduction
The cost of the temporary rate reduction is typically covered by an upfront lump sum payment. This payment can be funded by:
Sellers or builders as a buyer incentive.
Buyers as part of their closing costs.
Return to the Standard Rate
Once the reduction period ends, the loan transitions to the standard fixed rate for the remainder of the term.
Why Choose a Temporary Rate Reduction?
Reduced Initial Payments
Enjoy lower monthly payments early in your loan, easing your financial transition into homeownership.
Incentives for Buyers
Sellers and builders can attract buyers by covering the cost of a temporary rate reduction, reducing upfront financial burdens.
Predictable Payment Increases
Because the plan is structured, you’ll know exactly when and by how much payments will increase.
Who Can Benefit from Temporary Rate Reductions?
First-Time Homebuyers: Reduce financial stress during the early years of homeownership.
Sellers and Builders: Gain a competitive edge in a slower market by offering this incentive.
Buyers Expecting Income Growth: Ideal for those anticipating salary increases or additional income within the reduction period.
Let’s Get Started!
Discover how a temporary rate reduction can help you achieve your homeownership goals. Contact Cascade Mortgage Services today to explore your options!
Contact Us:
📞 Phone or Text: 503-515-7157
📧 Email: mike@cascademtg.net