We just put an offer in on a house and our mortgage broker is in the process of getting a mortgage approved for us. We were looking at putting 15% down for a 2.5%ish rate for 5 year fixed. Our broker just called us and advised that the lender he submitted the application to just sent out an email saying they’re offering a special promotion where we’d only have to put down around 10-12% down and we’d get a 1.8% rate for a 4 year fixed term. Math-wise it works out to a similar monthly payment for us but we end up with an extra 15k in our savings.

Is this a scam or something? Do lenders do these kinda promos often? Like it seems too good to be true, but we can’t see any downside. I assume the lender is just wanting to get as many people to use them so they can make more money and also figures rates are going to go up enough in 4 years that it would offset the lower rate we would get now. We aren’t naive enough to think that rates wont go up in the next 5 years, but also aren’t super knowledgeable about this kinda stuff.