What is the CapCenter 1% Rate Reduction Program?

The CapCenter 1% Rate Reduction Program is a lender-paid 1/0 temporary buydown. The program is great for applicants facing high interest rates and plan to refinance if rates drop in the future. When qualified, this optional program reduces the interest rate by one percent (1.00%) for the first year of the mortgage. Opting for this program results in a 0.250% increase to the note rate on the loan.

Example: Today, the best available rate for your particular mortgage is 6.500%. Assuming you lock your rate today, you will have two options:

  • Option 1: Lock your rate at 6.500% and make payments reflecting that rate for the life of the mortgage.
  • Option 2: Lock your rate at 6.750%. Your mortgage payments during the first 12 months will reflect a 5.750% interest rate. Beginning with the 13th mortgage payment, your mortgage payments will reflect a 6.750% interest rate.

More details on the program, and qualification can be found below:

This offer reduces the interest rate by one percent (1.00%) for the first year of the mortgage. CapCenter will fund a custodial escrow account, subject, to a maximum $9,708, with a lender-paid credit. Those funds will be disbursed directly to the investor to be applied only toward the interest accrued during the one-year buydown period. Opting for this program results in a 0.250% increase to the note rate on the loan. 

  • This offer is only valid on primary and secondary residence purchase mortgages underwritten through Fannie Mae, Freddie Mac, and Ginnie Mae.
  • This offer is only valid for mortgages with 15-year and 30-year loan terms.
  • This offer is not valid on Refinance Mortgages, Non-Agency Jumbo Loans, ARM Products, Investment Properties, VA and FHA Second Home Loans, or loans with a qualifying FICO score below 660.
  • Subject to agency restrictions, our offer may be combined with our flagship Zero Closing Mortgage program or your Realty Rebate program in some cases, but it cannot be combined with our Free-Floating Extended Rate Lock Program or any other CapCenter offer or promotion.
  • Offer may not be redeemed for cash or credit and is non transferable.
  • Offer cannot be retroactively applied to any loans.

This offer is subject to changes or cancellation at any time, without advanced notice, at the sole discretion of Capital Center LLC dba CapCenter. Additional restrictions/conditions may apply. This is not a commitment to lend. This offer is subject to individual loan approval, satisfaction of CapCenter’s underwriting requirements, and execution of a Temporary Buydown Agreement at closing. 

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