Is it smart to lock my interest rate while building a home? Generally construction takes four to six months to complete. The shorter the interest rate lock the better the interest rate. When you look at quoted market interest rates they are typically 30-day rate locks. Every 15 days after the original 30-day lock period rates increase slightly. Once you get up to a 90-day or 180-day rate lock lenders charge a fee to secure your rate. Is this money going towards closing costs? Extremely unlikely. At Cornerstone Mortgage, Peace of Mind Extended Rate Lock is the most aggressive long term rate lock program in the market today. When you put money down for the lock fee you are credited 100% of your rate costs towards your closing costs, so in the end you aren’t paying for the rate lock at all! Another great thing about the Peace of Mind Extended Rate Lock is if the interest rates go down within the last 30 days of your lock Cornerstone offers a float down period to give current pricing of the lower interest rate. So, is it smart to lock your interest rate while building a home? It is with Cornerstone!
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