ATM Outage Alert 
Don't delay purchasing the home of your dreams just because of potentially unattractive market rates. With UTFCU, you can purchase now and have the option to reduce your interest rate one time over the life of your loan.
What is the Mortgage Interest Rate Reduction Program?
Don't let market rates at your time of desired purchase stop you from taking your next big step in life. This option, available on eligible mortgage products, allows the Borrower to exercise an interest rate reduction 1x over the life of their loan! By exercising this option, you can permanently lower your interest rate for the remaining life of your loan. This option does not change any other loan terms.
Keep reading for details.
How Does it Work?
If you meet all eligibility requirements stated on the INTEREST RATE REDUCTION RIDER you signed during your mortgage closing process, you simply initiate the reduction process in writing. You can do so via UTFCU's secure digital banking messaging platform, at any branch, or via mail to UTFCU, Mortgage Department, PO Box 51848, Knoxville, TN 37950.
How to Exercise a Reduction?
Borrower must contact UTFCU in writing to initiate the request. Please note the reduced interest rate for the loan must be at least half of a percentage point lower than the initial loan rate at the time of the reduction request.
The interest rate reduction option is only available once during the life of the loan.
Eligibility Requirements
- Only the following qualifying loan products are eligible: 15-Year Fixed Mortgages, 15/30 Balloon Mortgages, and 30-Year Fixed Mortgages.
- Borrower must occupy the home as their primary residence and maintain exclusive control of the property.
- Loan must be in good standing and current with all payments (including loan payments, homeowners' insurance, and taxes).
- Borrower must have made at least six consecutive (and timely) monthly payments.
- There are no active bankruptcy cases pending nor has Borrower filed for bankruptcy protection within six months prior to the rate reduction request.
- Borrower’s loan is not in an active loss mitigation option, process, or consideration.
- Borrower continues to own and occupy the property.
Ready to Get Started?
Visit our Mortgage page to learn more about all of our mortgage options and take the next step in your home-buying journey.
Interest Rate Reduction Rider has been offered on all eligible products since rider creation in November 2023. This rider is not available for loans closed before the rider was created.
NMLS ID: 408460
Alimony, child support, or separate maintenance income need not be revealed if the Borrower or Co-Borrower does not choose to have the income considered for repaying this loan.