The battle to offer the lowest mortgage rate is in full swing, with homebuilders decidedly leading the way.
Struggling homebuilder Lennar, which is looking to dump its excess inventory, is offering a 3.625 percent (4.22% APR) “fixed “for life” mortgage on select homes, likely those in the hardest-hit areas of the country.
The offer is only good for purchase agreements written by April 23, and they must close by April 30th.
The mortgage program in question, offered by Universal Mortgage Co., has specific guidelines, including a minimum credit score of 700 and a down payment requirement of at least 10 percent.
The home must be owner-occupied and the loan cannot exceed the standard conforming loan limit of $417,000.
Last month, Lennar announced its “Peace of Mind” mortgage payment protection program, which provides up to six months of mortgage payments if a new buyer loses their job shortly after purchasing a home.
Homebuilders have been upping the gimmicks in recent months as they struggle to manage overflowing supply.
Funnily enough, they don’t seem willing to lower prices, but instead, have relied upon interest rate cuts to improve affordability.
Late last year, National Association of Home Builders president Jerry Howard called for 2.9 percent mortgage rates and a larger homebuyer tax credit to boost sales and clear inventory as the mood became increasingly desperate.