NEWS RELEASES

3-2-1 Promotion Couples Short-Term and Long-Term Benefits in a New Home Package

Oct 30, 2008 - New buyers of Southland homebuilder’s models and spec homes can take advantage of builder-paid interest rate buy down program

Since its’ founding over five decades ago, Gallagher and Henry has subscribed to a simple, practical business mantra: “We build the best homes in the best communities.” Into a new century, that mantra emerged true in the mind of its homeowners, many of them providing plenty of incentive for new buyers to turn to Gallagher and Henry’s proven record of success.

Today’s Gallagher and Henry buyers now have extra incentive, one that will translate into substantial savings.

In October, Gallagher and Henry teamed with its longtime associate, Wells Fargo Home Mortgage, to unveil a builder-paid 3-2-1 temporary interest rate buy down program. The special program can be applied to any of the homebuilder’s model and spec homes in Southland communities such as Orland Park, Tinley Park, Homer Glen, and Palos Park. In all, 15 homes are available in seven Gallagher and Henry-built communities. A list of the available homes can be found at www.gallagherandhenry.com.

“So many buyers want to move, but are waiting to sell their home; this program absorbs some of that risk by providing homeowners a lower interest rate and lower monthly payments right off the bat,” said Gallagher and Henry principal Michael Gallagher. “This program is our way of giving homeowners a better choice than the market’s providing right now.”

The program is simple and direct. In the first year of the loan, Gallagher and Henry buys down three percent of the secured loan’s interest rate. For example, instead of paying six percent in the first year, the homeowner would pay three percent with Gallagher and Henry picking up the difference. In the loan’s second year, the veteran homebuilder takes on two percent; in year three, one percent. The interest buy down comes at absolutely no cost to the homeowner.

“You’ll often hear that if something sounds too good to be true, it is. Well, that’s not the case here,” said Mark Zdenovec, a home mortgage consultant with Wells Fargo. “This program is of great advantage to buyers because Gallagher and Henry is absorbing the cost. Bottom line: dollar amount savings to the homeowner on the monthly payment.”

Consider the Wittington model in Orland Park’s Estates of Ishnala Woods community, an expansive four-bedroom, three-car garage home on a cul-de-sac lot. After putting down 30 percent on the $594,900 home, the monthly payment at a six percent interest rate for a 30-year loan would sit at $2,500.13. As a part of the interest rate buy down program, however, the homeowner’s monthly payment would fall to $1,758.09 during the first year of the loan. In year two, the monthly payment would sit at $1,990.82; in year three, $2,238.55. At the conclusion of the three year program, the Wittington homeowner will have saved a total of $19,235.16.

That $19,000-plus figure, however, only presents the short-term benefit. The homeowner could then attach those savings to the principal, a wise move that would result in the home being paid down quicker and provide the homeowner increased equity.

“The homeowner will not only get relief from the monthly payment in the first three years, but also have the ability to apply those savings to the principal for long-term benefits as well,” Zdenovec said. “The result is a new home from Gallagher and Henry, immediate savings, and potentially positive implications in the long term.”

· Download 3-2-1 Buydown Homes PDF showing financing details for all 15 available specs and models.

For additional information on the 3-2-1 builder-paid interest rate buy down program and the eligible Gallagher and Henry homes, please call Wells Fargo mortgage consultant Mark Zdenovec at (630) 788-9935 or Ken Crowder at (630) 240-2203.