If you are interested in buying a luxury home, you might be able to do so and get an interest rate of 3.99% on a 30 year fixed loan. As you know, that is a very good rate. But it only works if you are buying a home from Toll Brothers. CNN Money reports on the promotion the builder is running in the hopes of propping up the new home market:
Luxury homebuilder Toll Brothers Inc., said Wednesday that it will
offer buyers of its existing new-home inventory a 30-year, fixed-rate
mortgage at an interest rate of 3.99% with no points paid up-front.
That contrasts with a rate of 5.59% for the average 30-year, fixed-rate
mortgage with 0.3 up-front point, as reported this week by Bankrate.com.
offer buyers of its existing new-home inventory a 30-year, fixed-rate
mortgage at an interest rate of 3.99% with no points paid up-front.
That contrasts with a rate of 5.59% for the average 30-year, fixed-rate
mortgage with 0.3 up-front point, as reported this week by Bankrate.com.
This is an interesting development. It's also a good move by Toll Brothers. Many would-be homebuyers are waiting to see if mortgage rates fall further before making a move. But it is hard to beat a 30 year fixed rate at 3.99%, and Toll Brothers hopes that the stunt will encourage more to take the plunge. Now, if only the other homebuilders would follow suit…
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