AmeriSave Mortgage Corp., an Atlanta-based mortgage lender, on Wednesday announced the launch of a mortgage rate buydown program.
The Lock & Drop program allows qualifying borrowers to benefit from immediate monthly savings through a 1% effective mortgage-rate reduction over the first year of the loan, the company said.
AmeriSave said it now also offers a $750 credit that can be applied toward a qualifying future refinance transaction that can be used if mortgage rates fall.
“For more than 20 years, AmeriSave Mortgage has helped homebuyers save money on their mortgage payments,” said Mike Berte, AmeriSave president and COO. “Our new Lock & Drop program gives today’s prospective homebuyers greater confidence during this period of interest-rate uncertainty so they can purchase their dream home with peace of mind.”
AmeriSave Mortgage said it can also guide borrowers through multiple third-party-paid buydown options, depending on their situation (including 3-2-1, 2-1, 1-0 buydowns) that are funded by an incentivized third-party, such as home sellers, Realtors, or homebuilders.
An increasing number of lenders are offering buydowns as a way to make it more affordable for borrowers to buy a home at a time when mortgage rates have risen well above where they were a year ago.
Earlier this month, real estate data company Black Knight reported that nearly 6 in 10 homebuyers in January paid at least a half-point to permanently lock in a lower mortgage rate.
Founded in 2002, AmeriSave Mortgage Corp. is a direct-to-consumer lender with six major loan centers across the U.S. It is in 49 states and the District of Columbia.
