8/30/04 - Dubin Residential Offering 12-Month Rate Lock Program
August 30, 2004
Dubin Residential Offering 12-month Rate Lock Program
Catering to buyers who are hesitant to purchase a home for fear of increasing interest rates, Chicago-based Dubin Residential is offering a free 12-month rate lock program that protects buyers from increased rates. Available through Dubin's preferred lender, Chicago Bancorp, this program is available for a limited time at Dubin's properties in Chicago and Evanston .
“This program is perfect for buyers who want to buy a new construction home in the near future but are worried about interest rates increasing by the time they close on their home,” said Mike Kelahan, director of sales and marketing for Dubin Residential. “Some people may be afraid that they will not be able to afford a home in 10 or 12 months if interest rates were to increase. We want to offer a comfort zone for these buyers so they can take a confident first step into homeownership.”
As opposed to typical loan options, which secure the interest rate only at the time of the closing, rate lock programs allow buyers to lock in early and therefore bypass the risk associated with waiting until closing when interest rates could be higher. Dubin's 12-month rate lock option is open to all qualified buyers and free after a refundable deposit is put down at the time of application.
To take advantage of the program, a buyer first selects the type of loan they are interested in and the downpayment amount they want to pay. Borrowers qualify for the same loan amount with the 12-month rate lock program as they would with any other type of loan.
Once the buyer has applied for the 12-month rate lock program, the interest rate is capped off. The buyer will not pay more at closing than the original capped rate even if interest rates increase. In the event that interest rates go down, this program also allows buyers to “float” down and absorb a lower rate.
“Rate lock programs often do not offer the option to “float” the rate down,” said Kelahan. “They also usually cost the borrower one point, or one percent of the mortgage, to secure. It's uncommon for a program like this to be free to the borrower but it's just one more way Dubin makes buying a home a pleasant and easy experience.”
Brian Kohlstedt of Chicago Bancorp noted that with the market being as volatile as it is, and with interest rates projected to rise, a program like this eliminates a lot of risk for buyers.
“Buying a home is one of life's major financial decisions so it's natural for buyers to feel a little nervous, but the 12-month rate lock makes them feel more secure,” said Kohlstedt. “The program takes their mind off having to worry about what is going to happen to interest rates over the next year. It also adds a significant level of security to the decision-making process.”
Kohlstedt estimated that if rates increase by 1 percent in the next year, the 12- month rate lock program could save a buyer approximately $160 per month based on a $250,000 loan and today's 5-year adjusted rate mortgage.
Dubin Residential is offering the 12-month rate lock program to qualified buyers at all three of its new communities, including The Courts of Evanston, Kilbourn Court on the Northwest Side and Welbourn Row in West Lakeview .
Located at Chicago Avenue and South Boulevard in north-suburban Evanston, The Courts of Evanston offers three-story, maintenance-free townhomes with two to four bedrooms, 2 to 3½ baths, dens, roof decks and attached two-car garages. Homes range in size from 2,200 to 4,110 square feet and are base-priced from the $390,000s to the $690,000s.
On the corner of Belmont and Kilbourn avenues in the Kilbourn Park neighborhood on Chicago's Northwest Side, Kilbourn Court is being developed on an entire city block and offers three-story townhomes with two to three bedrooms, two to three baths, dens, balconies and attached two-car garages. Six floor plans, ranging in size from 1,779 to 2,122 square feet, are base priced from the low $300,000s.
Welbourn Row is comprised of six four-story brick buildings - with three levels of homes and a ground-floor parking garage - that occupy an entire city block at the corner of Wellington and Clybourn avenues in West Lakeview. The community offers 11 floor plans that measure from 829 to 1,345 square feet. Homes are base-priced from the $210,000s to the $290,000s and come standard with one bedroom plus den or two bedrooms, one to two baths, and balconies.
Dubin sales centers are open from 11 a.m. to 5 p.m. daily or by appointment. For more information about Dubin Residential, log on to www.dubinresidential.com , or, for The Courts of Evanston call (847) 328-1888; for Kilbourn Court , call (773) 777-7558; and for Welbourn Row, call (773) 528-8000.
Building condominiums and townhomes in Chicago since the early 1990s, Dubin Residential has earned a reputation for quality and value. The company is currently developing more than 400 homes at communities such as Kilbourn Court on the Northwest Side, Welbourn Row in West Lakeview and The Courts of Evanston.
Prices are subject to change.