Rate Lock on New Construction

[jmini]

Looking to start a new construction in a national builders community development.  Buiilder is saying it is taking 6-7 months from contract signing for completion.  Can I lock in my intrest rate now or do I have to wait until near completion of house

[mynameainttracy]

Short answer is ask your LO. .

In our case we got 2 pre-approvals. With NFCU they said they locked at no charge when we applied, but we are not using them. The bank we are going with offered locks at 150, 120 or 90 days out but there was a cost associated. I think it was 0.375% of loan amt for the 90 day one. BUT...if we held out to 60 days we could lock for free.

We are right at 90 days out right now and my LO emailed me saying we could lock at 3.25 right now. Not sure what we will do.

[frugalQ]

you can lock at 3.25% now?  Is this 30 year fixed?  I'd be all over that rate!

[ezdriver]

A 60-day rate lock is most common in new construction.

[Warrior2000]

How do you lock in rates? We are 4 months out, we just got a slab!

[frugalQ]

You discuss this with your LO. They will tell you when you can lock.