Extended Mortgage Rate Lock For New Construction

There is no greater anxiety than when it comes to securing a loan for your dream home. That’s why an extended mortgage rate lock for new construction should be a must on everyone's checklist. This type of lock provides you with the peace of mind knowing that your mortgage rate is secure, no matter how long your project may take. That way you can focus on the things that matter most - like selecting the perfect fixtures and finishes in your custom build.

Table Of Content:

• How Long Can You Lock In A Mortgage Rate? | Rate Lock Guide
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• Extended Rate Lock for New Home Construction Loans | Fidelity Bank
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• National Builder Division - Bank of America
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• Extended Rate Lock - MortgageMark.com
• Why Buyers Are Locking in Interest Rates on New Construction Homes
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• 9 Mortgage Rate Lock Questions Answered | Bankrate

What is an extended mortgage rate lock for new construction?

An extended mortgage rate lock for new construction is just like a regular mortgage rate lock – it secures your interest rate throughout the loan process and protects you from any increases in market rates during the building process. The only difference is that this type of lock extends beyond the usual 30-45 day period, allowing you more time to finish up your project without worrying about potential shifts in market rates.

How do I get an extended mortgage rate lock?

You can typically request an extended mortgage rate lock when applying for your loan at the lending institution or bank of choice. Just tell them what type of project you are working on and let them know that you need longer assurance on your interest rates so that you can complete the build without any added financial stress due to rising interest rates.

How long does an extended mortgage rate lock last?

It depends on each lender and the terms they provide, however most offer locks for up to 12 months and longer if requested. Keeping in mind that some lenders will require additional requirements such as specific milestones being met during construction before they will agree to extend the length of the mortgage rate lock.

Is there a cost associated with an extended mortgage rate lock?

Yes, typically there will be a fee associated with extending your property’s mortage rate lock, but it varies between lenders so be sure to ask about any potential fees prior to signing anything into agreement.

What other benefits come with having an extended mortgage rate lock?

Other than providing peace of mind by locking in current rates, another benefit of having a secured long-term interest rate means that you can budget better over time since unexpected fluctuations won’t impact how much money needs to be set aside for future payments as often. It also allows buyers more time to shop around and compare available lenders before making their final decision.

Conclusion:
An extended mortgage rate locks for new constructions offers homeowners one less thing to worry about during their building journey by securing their current market interest rates regardless of how much time passes by throughout construction – giving them valuable peace of mind while planning the house they've always wanted!