Today’s “Mortgage Minute” comes from our trusted lending partner at New Penn Financial. Senior Loan Officer Paul Diaz tells us that his company is now offering a fantastic opportunity for homebuyers looking to buy a new construction home.
Most lenders lock in interest rates for buyers for a 60 day period. So if you are buying a home that’s under construction and it’s farther than 60 days out to completion, you used to have to worry about what would to happen to interest rates during that time period. Now you don’t!
Here’s what Paul says about the program:
“Building a home may take longer than the usual 60-day mortgage interest rate lock period. In fact, it almost always does! Fortunately, we have a product called “Home Builder Rate Lock Advantage“. With this product, you can lock in your rate for up to 360 days. No more sweating rate increases during construction. If rates drop, just reset to the lower rate. You can’t lose.
Here are the highlights for qualified borrowers:
- Extended rate lock choices on FHA and conventional fixed-rate and adjustable-rate mortgages
- The option to reset to a lower market rate before closing or shift to a better fitting mortgage at closing
- An affordable lock-in fee that may be refunded in closing costs
Our “Home Builder Rate Lock Advantage” means total peace of mind— no matter which way rates go. It’s just one more way that New Penn helps make home ownership easier!”