Quote:
Originally Posted by rohara66
Would you typically see these rates come down when you get closer to possession of your new homes or do you lock in at these rates and its 100% final?
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Good morning rohara66 -
The builder rates are protection during the build time primarily. It has 2 purposes:
1- Provide you with an approval that the builder will require for the full build time. Not all builders require this but is common.
2- Protects you in case rates rise and the builder rate is the worse case rate you would get.
The majority of the time, the rates can be reset to the lenders current rates within their specific rate hold timeframe... which is typically 90 to 180 days.
Hope that answers your questions. ~ Tim