Want to ask for a rate lock and buy down from a new builder for a spec home. The home won’t be finished until March 2026. In our offer I’d like to ask for the buy down and for them to lock it in.
My realtor sent me a text saying the rate is lower on quicker close homes because they can lock 60 days out and pricing is different on longer. But I thought you can extend a lock longer than 60 days? I’d ask but it’s late night here. Is it just because the builder wouldn’t want to pay extra for a longer lock? Or because you can’t do that?
I’m confused because if we ask for a specific date then when it’s March and we close the rate could essentially be higher. How does that benefit us at all even asking for a lower rate then?
How do rate locks work more than 60 days out?
byu/Civil_Mango8479 inRealEstate
Posted by Civil_Mango8479
1 Comment
Your realtor is right about the pricing being different for longer locks. You can definitely extend beyond 60 days but lenders charge more for longer rate locks because they’re taking on more risk – rates could move against them over that time period
The builder probably doesn’t want to eat the cost of a 14+ month rate lock since those fees add up. Most builders will just give you whatever the market rate is when you actually close, which is why asking for a specific rate now doesn’t really help you much unless they’re willing to guarantee it