We are using our accelerated savings plan, the ‘Freedom Certificate’ to help make home ownership a reality more quickly. Our Freedom Certificate is “laddered” over a 5-year period. Imagine that you deposit the minimum of $2500 into a Home Buyers Club account. 1/5 or 20% of the amount would go into a one-year tier, 20% into a two-year tier, another 20% into a three-year tier and so forth. The beginning average yield on your money would be a little better than the 3 year tier. At the first anniversary date the following year you could add the money that you saved during the year to the money from the 1st year tier and move it to a 5 year tier at whatever the 5 year certificate rate is at that time. Each year on the anniversary date you would do the same. Because you are always adding to and moving 20% of your savings to the 5 year tier your average yield will grow very quickly, and as a result your savings will grow much, much faster. There are no restrictions on the amount you can add each year at the anniversary date and the money may come from any source.
Another Club advantage is that at account opening you will sit down with a mortgage specialist who will help you establish goals such as how much you might really need for a down payment (it might not be as much as you think) and do a credit check to help ensure that you are creditworthy when it comes time to buy. They will also show you programs such as “Within Reach” which assists home buyers with the down payments via grants and other programs.
If you already know an area where you want to look, we can assist with referrals to seasoned realtors who work with Prospectors and offer discounted commissions to our members. Once you find the house of your dreams, and are approved, you can “close” the certificate with no penalty, and use the money on your purchase and financing through our mortgage partner, Arrowhead Capital.
Home ownership is still one of the best financial investments a person can make. Prospectors can help make that dream come true – a great savings plan, resources, and professionals are all here to help.