Extended Rate Locks for New Construction

If you're building a new home that will take several months to complete, then obviously you have to be concerned with what interest rates are doing while you are building. As a general rule, the longer you "lock in" your interest rate for, the higher the rate will be. And, there are limitations on many programs as far as how long you can lock a rate for. We have many programs that allow for your interest rate to be locked in for up to 9-12 month periods, but most of the time these will require an up-front fee, and the rate will be higher than a normal 30-45 day lock. However, many of these provide for a "float down" option which lets you improve your rate, if rates overall have improved, once your house is complete.

You will need professional guidance from one of our mortgage loan specialists as to what makes sense for you, based on your specific situation, as this is a relatively complicated mortgage thought process.