Extended Rate Lock

Extended Rate Lock for New Construction

Building a new home is an exciting process, but it can also be a stressful one. One of the biggest concerns for many new construction buyers is the fear of interest rates rising before they can close on their loan. Fortunately, Fairway Independent Mortgage Corporation has a solution to this problem with their Extended Lock Program for New Construction.

Use a temporary buydown with our extended lock program:

The Extended Lock Program for New Construction allows buyers to lock in their interest rate for up to 360 days while they wait for their new home to be built. This provides a significant advantage for buyers as it allows them to budget and plan more effectively without worrying about rate fluctuations.

In addition, the Extended Lock Program for New Construction also includes the option of a temporary buydown, which can lower the interest rate for the first few years of the loan. This can provide significant savings for buyers during the early years of homeownership and help to make the loan more affordable.

Another benefit of the Extended Lock Program for New Construction is that it allows buyers to lock in a rate early in the building process. This means that buyers can secure a rate before construction begins, and can avoid the risk of rates increasing during the building process.

Furthermore, the program also offers the option to lock in an interest rate for an extended period of time, which allows the borrowers to have a certain rate locked in for a longer period. This is beneficial for buyers who are unsure of when their home will be completed, or who want more time to shop for a home while keeping their rate locked in.

In conclusion, the Extended Lock Program for New Construction offered by Fairway Independent Mortgage Corporation is an excellent option for new construction buyers looking to secure their rate while they wait for their new home to be built. This program provides peace of mind and can save buyers money in the long run. It also offers the option of a temporary buydown, which can provide significant savings for buyers during the early years of homeownership. If you’re in the market for a new construction home, consider using the Extended Lock Program for New Construction to make the process less stressful and more affordable.

Extended Lock FAQs

Fairway’s Extended Lock Program is offered for Conventional, FHA, VA, and USDA mortgage loans. It allows borrowers to lock an interest rate for a period of up to 360 days with a rate adjustment and requires an up-front refundable fee at the time of rate lock for new construction loans. It also has a float-down option.

Below are some highlights of the program:

Up-Front Refundable Fee
A 1-point up-front refundable fee is required for lock periods of 120, 180, 270, or 360 days. This will be collected from the buyer at the time of lock.
The up-front fee is refundable at closing.
The up-front fee is not refundable if withdrawn, canceled, or changed to a product that is not eligible under the extended lock program.

Float Down Option
The borrower may exercise a one-time float-down option to reduce the locked interest rate within 30 days of closing if market rates improve during the lock period.
The float down rate is based on current 60-day pricing.

Note: Additional requirements will need to be met in NY, MA, and MO

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