Up to
1.5%
Interest Rate Deduction
$0
Upfront Cost
Save HUNDREDS on your monthly mortgage payment! This adds up to THOUSANDS per year in savings!
This sample scenario shows you just how much money you can save with RateDrop.*
Monthly Savings
$418Home Purchase Price: $500,000
Loan Amount: $450,000
Loan Term: 30-yr Conventional
WITHOUT RATEDROP
Sample Rate
6.0%
Monthly Payment
$2,698
Appreciation Cap
—
WITH RATEDROP
Sample Rate
4.5%
Monthly Payment
$2,280
Appreciation Cap
$10,000 /yr
Monthly Savings
$418
*Sample loan scenario is based on a 30-yr conventional mortgage, $450,000 loan amount with 10% down payment. Sample rate without RateDrop is 6% / 6.401% APR. Sample rate with RateDrop is 4.5% / 4.809% APR. Monthly payments with and without RateDrop are reflective of principal & interest payments only; they do not include taxes, homeowners insurance, or mortgage insurance.
Ruoff RateDrop is a fixed-rate mortgage that can dramatically reduce your interest rate, saving you hundreds every month, with zero upfront cost.
STEP 1
Get a Lower Rate
The Ruoff RateDrop program will cover the entire upfront cost for a permanent interest rate buydown.
STEP 2
Partner With a Co-investor
In turn, you take on a co-investor in your home, which means when you are ready to sell or refinance any earned appreciation is shared.
STEP 3
Share Future Appreciation**
The co-investor return is capped at 2% appreciation for each year until a sale or refinance occurs. Any appreciation earned above that is 100% yours.
**Sample rates are for illustrative purposes only. In this scenario, co-investor accrues a max of $10,000 for each year of your mortgage. This amount is figured as 2% of the initial purchase price, which in this example is $500,000. ($500,000 x 2% = $10,000/year). When you sell your home or refinance your mortgage, co-investor will use this equation to determine each side’s portion of your home’s equity. For example, if you sell your home in five years, then co-investor would receive $50,000 and the rest of the equity is yours to keep. ($10,000/yr x 5 yrs = $50,000).
We've designed RateDrop with simple, transparent criteria so you can easily see if you qualify.
Purchase or Refinance
RateDrop can be used for a refinance or a purchase.
Maximum 90% LTV
Eligible for a maximum Loan-to-Value ratio of up to 90%.
680 Min. Credit Score
A minimum FICO credit score of 680 is required to participate.
Primary Residence
Program is strictly available for primary residence home purchases only.
Property Types
Available exclusively for single family and manufactured homes.
Eligible Loan Terms
The RateDrop program can be applied to standard 30-year fixed, 15-year fixed, and HomeReady loan products.
RateDrop is only eligible in certain counties. Check with a Ruoff loan officer for property eligibility.
*Sample loan scenario is based on a 30-yr conventional mortgage, $450,000 loan amount with 10% down payment. Sample rate without RateDrop is 6% / 6.401% APR. Sample rate with RateDrop is 4.5% / 4.809% APR. Monthly payments with and without RateDrop are reflective of principal & interest payments only; they do not include taxes, homeowners insurance, or mortgage insurance.
**Sample rates are for illustrative purposes only. In this scenario, co-investor accrues a max of $10,000 for each year of your mortgage. This amount is figured as 2% of the initial purchase price, which in this example is $500,000. ($500,000 x 2% = $10,000/year). When you sell your home or refinance your mortgage, co-investor will use this equation to determine each side’s portion of your home’s equity. For example, if you sell your home in five years, then co-investor would receive $50,000 and the rest of the equity is yours to keep. ($10,000/yr x 5 yrs = $50,000).
Rates, terms, conditions and other information subject to change without notice, including changes due to market conditions and availability. Property must be purchased as principal residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected and customer qualification details as all applicants are subject to credit and underwriting approval. Ruoff Mortgage Company, Inc., d/b/a Ruoff Mortgage, is an Indiana corporation. For complete licensing information visit http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/141868. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Equal Housing Lender. NMLS#141868
