MORTGAGE BLOGBlog posted On October 07, 2026
For many home buyers, signing the closing documents is only the beginning of the journey. There are moving expenses, housing purchases, and a plethora of other costs that come when settling into a new home. And that is precisely where our new program, Rate Break, can help! Rate Break is a lender-paid temporary buydown that gives eligible buyers a lower mortgage payment for their first 12 payments. It’s another way for buyers to create a little extra wiggle room in their budget.
How Rate Break Works
Rate Break is designed to provide some payment relief at the beginning of an eligible purchase loan. Here’s the basic structure:
The borrower still qualifies for the loan at the full note rate, and the note rate does not change. In other words, Rate Break isn't changing the long-term terms of the mortgage. It provides a temporary payment benefit during the first 12 payments.
Why a Lower Payment at the Start Can Matter
The early days of buying a home can come with many expenses beyond the mortgage itself. A lower payment during the first 12 payments may give eligible buyers some additional room in their budget for things like:
A New Option for Buyers and Their Real Estate Partners
For buyers, Rate Break is another financing option to discuss with their loan officer when evaluating a purchase.
For real estate professionals, it's another tool to have in the conversation when helping clients understand their financing options. Payment is an important part of the home buying equation, and a temporary buydown can give eligible buyers another way to approach those first 12 payments.
More Tools for Your Mortgage Toolbelt
Mortgage rates naturally get a lot of attention, especially in the current rate environment, but they are only one piece of the home buying equation. Purchase price, down payment, closing costs, loan type, competition, and seller concessions can all play a role in the overall cost of buying a home.
Rate Break is one tool buyers may want to consider, and there are other options that could provide additional savings, lower payments, and flexibility throughout the mortgage process:
Is Rate Break Available for Every Home Loan?
Rate Break is available on eligible purchase transactions with new locks on or after October 7, 2026, subject to program guidelines and availability.
Eligible loan types include:
A Different Way to Look at the First 12 Payments
Buying a home is a long-term decision, but the first few months can come with a unique set of expenses and priorities. For buyers and the real estate professionals helping them navigate the market, it's one more financing option worth knowing about. Are you ready to expand your home financing options?
*Rate Break is a temporary buydown. For the first 12 monthly payments, the principal and interest portion of the payment is calculated at an interest rate 0.50% below the note rate. Beginning with the 13th payment, the principal and interest payment is calculated at the full note rate for the remainder of the loan term. Your note rate does not change. CMG pays the cost of the buydown through a lender credit. The borrower must qualify at the full note rate. Available on purchase transactions only, on new locks from 10/7/2026 through 12/31/2026. Eligible loans: Conforming and High Balance Conventional (Fannie Mae and Freddie Mac), FHA, and VA fixed-rate Loans; and Conventional 5/6, 7/6, and 10/6 SOFR adjustable-rate mortgages. Government adjustable-rate mortgages and Construction and Renovation loans are not eligible. May not be combined with any other CMG promotion or pricing program. Not all borrowers, properties, or loan scenarios qualify. All loans are subject to credit and property approval and applicable program guidelines. Program dates, terms, and availability are subject to change without notice. This is not a commitment to lend.
**CMG Home Loans will cover all customary lender fees, which are lender administrative fees, tax service fees, appraisal fee, and credit report fee. This offer does not cover discount points. Credit cannot exceed total fees. Rate Rebound is only valid on future conventional conforming, government, and jumbo loans in our retail channel (future Construction Loans, All in One, HELOCs, Bond, or HFA loans are excluded). Rate Rebound is only available on loans originated by CMG Home Loans. There may be additional restrictions based on investor. Offer may not be redeemed for cash or credit and is nontransferable. Offer cannot be retroactively applied to any loans. Offer may not be used with any other discounts, promotions, or interest-only/buy-down and second-lien products. This offer is subject to changes or cancellation at any time at the sole discretion of CMG Home Loans. Additional restrictions/conditions may apply. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines. Program will be available on loans disclosed on or after 11/1/22. Program is applicable for refinances 6 months after closing up to 5 years from original note date and with a net tangible benefit which includes a rate reduction of 0.5%, going from an ARM to fixed rate, reducing loan term, movement to a more stable product, or a lower principal and interest payment. By refinancing the existing loan, the total finance charges may be higher over the life of the loan.
