Chappell Launches Relax Rate (Float-Down) Program for Buyers

Chappell [Powered by Compass] is excited to announce its new Relax Rate program in collaboration with its preferred lending partner, Team Orebaugh of Cross Country Mortgage. The new program utilizes an innovative “float-down” model for buyers looking to lower their monthly mortgage payments for the first two years while living in their home.

Relax Rate offers buyers the ease of locking in a mortgage rate two points lower than industry averages currently present in the market. As a buyer, you can take advantage of a 2% drop in the first year of living in your home and then a 1% drop in year two. Then, you can refinance at zero costs in year three should national interest rates drop, and you wish to lock in a lower rate. This no-cost refinance alone can save you thousands of dollars in closing costs and other associated fees. In fact, according to Value Penguin, “the average closing cost for refinancing a mortgage in America is $4,345.”

“Higher mortgage rates have stressed buyers and slowed home sales,” said Kevin Woody, Chappell COO. “Our Relax Rate program can save you hundreds of dollars on a monthly mortgage payment, often at no cost to you. Your Chappell agent will negotiate the lower rate for you, allowing you to relax and experience real estate differently.”

National mortgage rates according to Nerd Wallet (January 2023)

According to the popular finance website, the national average for a mortgage rate sits at ~6%. Due to inflation, that’s a stark contrast to average national rates that hit ~3% in early 2022.

“So, I bought my first house about 20 years ago,” said Johnny Chappell, Owner & Broker at Chappell. “The interest rate was 7%. In fact, the lender came to the closing and said, ‘You’re never going to get a lower interest rate than this.’ Well, guess what happened? For 20 years, the interest rate on mortgages slowly but steadily went down and down until they got to about 3%, which was unrealistically and unsustainably low. Now, they’ve risen to 6% and higher to try and help make the economy healthier. But — this also means there’s more opportunity in the housing market. There are options on interest rates, like the Relax Rate program, adjustable rate mortgages, or ARMs. And much more.”

Here’s How Chappell Relax Rates Works

* This is based on an estimated $500,000 home, a 10% down payment, and a 30-year-fixed rate of 6.5%. This example reflects Principal & Interest payment only.

  • A Chappell agent works hard for you, helping land your dream home valued at $500,000.
  • Your 30-year loan comes with a rate of 6.5%, and your monthly mortgage payment (P/I) is estimated at $2,844.
  • Your rate of 6.5% immediately drops to 4.5% with Relax Rate.
  • Your new monthly payment is $2,280 for the first year. This results in a saving of $564/month or $6,768 for the year.
  • You save $564 per month or $6,768 for the year with Relax Rate!

To learn more about this program, please
contact a member of our team.

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// #ChooseChappell x #Compass 


*Payments referenced in our example do not reflect the property tax and insurance portion of the monthly payment. The cost of taxes and insurance varies by property and should be discussed with your Chappell agent and CCM loan officer. Many builders and sellers in our market are open to covering the cost of Relax Rate, but it is a case-by-case decision. We can not guarantee that any seller will make this contribution. Our success in negotiating a Relax Rate is greatly enhanced by working with CCM early in the process. There are variations to this program that may benefit your specific needs. Let’s connect to discuss which is best for your situation and selected property.