10/24/02 - Dubin Residential Unveils Free 12-Month Lock on Mortgage Rates.
Thursday, October 24, 2002
Dubin Residential Unveils Free 12-Month Lock on Mortgage Rates
Chicago-based Dubin Residential, in partnership with Chicago Bancorp, has unveiled a new long-term, rate-lock program that lets buyers fix their mortgage-interest rates at current levels for the next nine to 12 months at no cost.
"Mortgage rates have fallen to 40-year lows, which is great if you are closing on a home today," said David Dubin, president of Dubin Residential. "But for buyers considering homes in the pre-construction stage, there's no telling where rates might wind up in nine to 12 months when their home is completed. Our rate-lock program gives these buyers the peace of mind to know that any future rate change will not push their mortgage beyond their budget."
Dubin's long-term, rate-lock program is offered in conjunction with Chicago Bancorp, a national mortgage banker. The program is available to buyers who reserve a home at one of the builder's townhome or condominium developments in Chicago and Evanston.
According to Dubin, typical rate-lock programs require buyers to post a deposit equal to one percent of the loan amount at the time of reservation. Through the Dubin Residential program, buyers still post the deposit, but the builder will refund this amount at the time of closing. "We are essentially buying the rate ceiling for our customers," Dubin said.
In addition, if rates fall below the locked rate within 60 days of closing, buyers can lock in at the lower rate at no cost.
Buyers can choose a rate lock of either 270 or 360 days in length, depending on their expected date of closing. Initially, buyers chose a three-, five-, or seven-year adjustable-rate mortgage (ARM), which would ordinarily float up or down with the market. However, Chicago Bancorp caps the ARM at the rate available on the day of reservation. Within 60 days prior to the day of closing, buyers can choose to remain with their original ARM at the locked rate, float down to a lower ARM rate if available, or convert to any other mortgage option at prevailing market rates.
If rates do rise, the savings to buyers in the program can be substantial, said Brian Kohlstedt, Chicago Bancorp sales manager.
"Take, for example, someone with a $200,000 mortgage who locks a five-year ARM at 6.25 percent. If at closing the interest rate on a five-year ARM has risen to 7.25 percent, the homebuyer locked in at 6.25 percent will save $10,020 in interest over the life of the mortgage," Kohlstedt said.
And, he noted, if rates drop within 60 days of closing, buyers can still float down to the lower rate.
"No one can predict when the next rate jump might occur," Dubin said. "But this program gives buyers the best of both worlds: They get the security of a cost-free rate ceiling, and the option to take advantage of lower rates if market conditions allow."
Dubin communities with homes expected for delivery within the next nine to 12 months include Welbourn Row, one of the most affordable new communities in West Lake View. Located along Clybourn Avenue between Wellington and Hoyne avenues, the development will transform an entire city block into a new-construction community.
Pre-construction prices start at $210,000 for two-bedroom condominiums in Phase I. Welbourn Row is located near Hamlin Park, a Dominick's and new retail outlets along the Clybourn Corridor such as Costco and Old Navy. Surrounding neighborhoods include Bucktown, Lincoln Park and Roscoe Village. Contact (773) 528-8000.
In the West Loop, Arcadia Place offers 34 three-story townhomes with two to three bedrooms, two to three baths, attached two-car garages, balconies and roof decks. Ranging in size from 2,000 to 2,140 square feet, the homes are located just south of Madison Street on Aberdeen and within walking distance of the Loop. Pre-construction prices range from $379,900 to $499,900. Contact (312) 738-1818.
The Courts of Evanston is a north-suburban community of 90 townhomes at Chicago Avenue and South Boulevard. The townhomes feature three levels of outdoor space and attached, two-car garages. Six floor plans offer 2,200 to 2,774 square feet, two to three bedrooms, and 2 to 21/2 baths. Base prices range from $368,900 to $458,900. A seventh plan, base-priced at $649,900, features 4,032 square feet, four bedrooms, 31/2 baths, a den, family room and two-car garage. Contact (847) 328-1888.
In Albany Park, Ainslie Row features 22 townhomes at Ainslie Street and Pulaski Road. The three-story homes include two bedrooms, two baths, balconies and attached two-car garages. Three floor plans range from 1,600 to 1,650 square feet and are base-priced from $252,900 to $272,900. The development's sales center and a fully furnished and decorated model are located at Dubin's Emerson Point community in Rogers Park. Contact (773) 761-1100.
For more information about Dubin's long-term rate-lock program, contact Brian Kohlstedt at Chicago Bancorp, 1640 N. Wells, Suite 105, Chicago, Ill., 60614; (312) 943-1300, ext. 237. Or contact any Dubin sales center or visit www.dubinresidential.com.
Building townhomes in Chicago since the early 1990s, Dubin Residential has earned a reputation for quality and value. The company is currently developing nearly 300 townhomes, condominiums and lofts in the Chicago area.
Prices subject to change.