Toll Bros. offers 3.99% 30-year loans

One of the nation's largest builders is trying to shock the flatlining new-home market into action with an incentive plan that will slash monthly mortgage payments for qualified buyers.The home buyer's incentive above and beyond what other deals you have seen.Luxury homebuilder Toll Brothers Inc., said Wednesday that it will offer buyers of its existing new-home inventory a 30-year, fixed-rate mortgage at an interest rate of 3.99% with no points paid up-front. That contrasts with a rate of 5.59% for the average 30-year, fixed-rate mortgage with 0.3 up-front point, as reported this week by Bankrate.com.

"The offer is aimed at people waiting for the rates to drop,It will be a strong catalyst for potential buyers to get off the fence." said Don Salmon, CEO of TBI Mortgage

New home sales have been extremely slow. In November, the latest month for which statistics are available, sales of new homes fell to an annualized rate of 407,000, down 2.9% from 419,000 in October and off 35.3% from November 2007.

Then, late Thursday, the company sweetened its offer, announcing that the 3.99% rate could also be locked in for as long as nine months. That option is aimed at Toll customers who want to purchase a new, built-to-suit home, rather than existing inventory.