Helps people purchase homes in high-interest-rate environment
MERIDEN, Conn., April 12, 2023 /PRNewswire/ — Planet Home Lending, a national mortgage lender and servicer, has added a new home loan option, 1st Year Flex, for people who want to begin the homeownership journey with a lower monthly payment for one year.
“Planet understands the affordability challenges people face in today’s market. We’re committed to finding innovative solutions to help more borrowers purchase a home,” said Michael Dubeck, CEO and President of Planet Financial Group, parent of Planet Home Lending. “1st Year Flex is just one of many solutions and resources our customers can tap to reduce the cost of homeownership.”
1st Year Flex is a temporary buydown, paid through a lender credit, meaning it gives the effect of a lower rate for the first year of your mortgage loan. That can free up money for things new homeowners need, like furniture, landscaping, and home updates. This can also result in a slightly higher interest rate over the life of the mortgage loan.
Planet also offers two-year temporary buydown and permanent buydown options. Buydowns can be paid for by home sellers, homebuyers, or Planet Home Lending.
With a temporary buydown, the interest rate is effectively lowered for a limited time, typically one or two years. This temporarily lessens the monthly payment, with the ability to refinance into a lower fixed rate when rates come down.
The funds for a temporary buydown are held in an escrow account tied to your mortgage and belong to you until they’re applied to the payment owed. Each month, a portion of the buydown fund goes toward the mortgage loan payment. By the end of the temporary buydown period, the fund is completely spent.
If you decide to refinance before the end of the buydown period, say in six months or one year, you can use any funds still left in the buydown account to pay closing costs on your refinance into a new mortgage.
About Planet Financial Group, LLC
Planet Financial Group, LLC, Meriden, Conn., is a fully integrated family of companies delivering innovative origination, servicing and asset management solutions. Through this synergistic ecosystem of products, services and technologies, PFG provides best-in-class experiences for investors pursuing value maximization and borrowers seeking streamlined end-to-end loan lifecycle support. PFG is the parent of Planet Home Lending, LLC and Planet Management Group, LLC, which also does business under the name Planet Renovation Capital.
About Planet Home Lending, LLC
Planet Home Lending, LLC, Meriden, Conn., (NMLS #17022) is a national mortgage lender and servicer delivering exceptional customer experiences to homeowners and homebuyers. Planet Home Lending, LLC is an Equal Housing Lender. For more information about Planet Home Lending, LLC, please visit https://planethomelending.com.
Vice President, Communications
SOURCE Planet Home Lending, LLC