Rate Protection Program
Given today’s uncertainties and low housing inventory, homebuyers need added security to their home purchase decision.
Historically, financial market volatility and uncertainty have had a significant negative impact on homebuyers. To counter this unnecessary risk concerning interest rates for borrowers, MCM, Inc. Mortgage Capital Management has refreshed its original float down lock concept for the Rate Protection Plan (RPP.) The new RPP structure is designed for mortgage bankers to offer their customers without an upfront fee. This structure provides for a “Capped” interest rate and price on a borrower’s fixed-rate mortgage application for up to 180 days with no upfront fee. Borrowers receive valuable interest rate protection – one less thing to worry about…. The worst-case scenario is known to eliminate financial market uncertainty, and borrowers remain qualified at capped rates in the event rates increase thereby reducing closing rate risk for lenders. Under the RPP program, a Borrower’s pricing level can float down with the current market if mortgage rates decrease or stay the same, versus an unnegotiable, mandatory “Locked In” structure.