Rate Protection Program

by MCM Analyst 2/4/2021

Calibrate | Focus | Execute

 

Given today’s uncertainties and low housing inventory, homebuyer’s need added security to their home purchase decision.

Historically, financial market volatility and uncertainty has 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 aCapped” 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 eliminating 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 stays the same, versus an unnegotiable, mandatory “Locked In” structure.

 

 

Rate Sheet Pricing:

2.750% @ - 1 point

Cap Adjustment for 180-day RPP:

  .375% + 0 point

RPP Capped Pricing:

3.125% @ - 1 point

 

 

 

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