Have you ever taken out a mortgage only to see interest rates drop afterward, leaving you wishing you had waited for the perfect time to buy? With Education First FCU’s Rate Escape mortgage promotion, you don’t have to put your homebuying plans on hold while waiting for rates to change 🏠
Qualifying borrowers may be able to lower their mortgage rate in the future if rates drop during the first five years of their loan. Sound too good to be true? Let’s take a closer look at how Rate Escape works.
How Does Rate Escape Work?
With Rate Escape, eligible Education First FCU mortgage holders can lower their mortgage rate once during the first five years of their loan if rates drop below their current rate. That means you can move forward with buying the home you love without constantly wondering if you should wait for rates to change. If rates become more favorable down the road, Rate Escape gives you the flexibility to take advantage of them and potentially save money over the life of your loan.
Why Does a Mortgage Rate Matter?
While everyone wants a lower interest rate on their mortgage, it can be difficult to see just how much that rate can affect the overall cost of your loan. We did the math for you, and even a 1% difference can make a surprisingly big impact.
Looking at the table above, the only difference between these two loans is the interest rate. The loan with the lower rate comes with a monthly payment that is roughly $180 less and saves the borrower $63,910.92 over the life of the loan. That’s a significant difference from just one percentage point. It also shows why having the opportunity to lower your rate through Rate Escape could make a meaningful difference over time. Want to see what a lower mortgage rate could mean for you? Check out our mortgage calculators to explore your options and see how a potential Rate Escape rate reduction could affect your monthly payment and overall loan cost.
Why Wait for a Perfect Rate?
Trying to predict where mortgage rates will go can make buying a home feel like a guessing game. You could wait for rates to fall, only to find that your dream home has already been sold or that home prices have changed by the time you're ready to buy. On the other hand, buying now can leave you wondering if you should have waited for a better rate.
That’s where Rate Escape can give eligible borrowers some added flexibility. Instead of putting your homebuying plans on hold while waiting for the “perfect” rate, you can move forward with your purchase and can lower your rate later if rates become more favorable and you meet the program requirements. The housing market is always moving, but Rate Escape can make the “perfect time” anytime!
Buy With as Little as 5%* Down
Finding the right mortgage isn't just about getting a good interest rate. You also have to consider how much you'll need upfront to make your homeownership goals a reality. With Education First FCU, qualifying borrowers may be able to buy a home with as little as 5%* down, making the upfront cost more manageable.
For example, on a $250,000 home, a 5%* down payment would be $12,500. That means you may not have to wait years to save up a much larger down payment before pursuing the home you want. As with any mortgage, specific down payment requirements and terms depend on your individual situation and loan qualifications.
FAQs
Are there any fees for using the Rate Escape promotion?
No! There are no fees associated with using Rate Escape. It's a free benefit for eligible borrowers.
How many times can you drop your rate?
Rate Escape gives eligible borrowers a one-time opportunity to lower their mortgage rate if rates become more favorable.
Is Rate Escape the same as refinancing?
No. Rate Escape is designed to give eligible borrowers an opportunity to lower their mortgage rate without going through a traditional refinance. This can provide a simpler way to take advantage of more favorable rates when available.
Ready to Make Your Move?
You shouldn't have to wait for the “perfect” rate to start looking for your dream home. With Education First FCU’s Rate Escape promotion, you can move forward with confidence knowing you may have an opportunity to lower your mortgage rate if rates become more favorable.
Ready to get started? Explore our mortgage options today or reach out to our mortgage team to see how Rate Escape could fit into your homebuying plans.
*Education First Federal Credit Union (EFFCU) Rate Escape Mortgage Loan Modification Terms and Conditions, Eligibility and Disclosures
To qualify for a rate modification on your mortgage loan, the loan(s) and borrower(s) must meet the following criteria:
(1)Loan is one of the following fixed-rate mortgage products: 10,15, 20, or 30-year Deed of Trust originated with EFFCU on or after August 1, 2025. (2)At the time of request, members must qualify for a rate reduction of at least 0.25%. Rate eligibility is based on individual and co-borrower credit approval and worthiness upon origination of the loan (3)The borrower must have made at least twelve (12) consecutive monthly payments that fall within the 10-day grace period leading up to the time of the request (4)Borrower does not have an active bankruptcy case pending or has not filed for bankruptcy protection within twelve (12) months before the modification request (5)Loan is not in an active loss mitigation option, process, or consideration (6)Borrower(s) continue to own the property, notwithstanding successor-in-interest exceptions (7)Loan is only eligible for the Rate Escape modification one (1) time within the first five (5) years of the loan.
Exercising the Rate Escape modification option will permanently reduce your interest rate and the remaining principal and interest payments on your loan, but will not modify any other terms contained in your loan documents, including the principal balance, maturity date, and additional amounts due for escrows as part of your monthly periodic payment under your Security Instrument. RATES AND TERMS ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. To exercise the Rate Escape modification option, the borrower(s) must initiate the request with Education First Federal Credit Union (EFFCU) Mortgage Department. Borrower(s) are solely responsible for monitoring EFFCU loan rates to determine eligibility, subject to the abovementioned criteria. EFFCU will only reduce the interest rate of a qualifying mortgage loan product under the Rate Escape modification option if all applicable criteria are satisfied at the time of the request. These terms and conditions do not constitute a commitment to lend, nor a guarantee that you will be approved, for a mortgage loan from Education First Federal Credit Union. Education First Federal Credit Union is Federally Insured by NCUA and is an Equal Housing Lender. *Down Payment as low as 5% for Qualified applicants. Rates depend on individual creditworthiness and are subject to change without notice.