Folks who have put offers on new construction homes with expected closing dates after Aug 2022. Are you exploring the option of locking interest rates, or would you rather wait for the closing period? With the recent Fed hike, the rates are crazy 5.00% +
Can you ask seller for a discount if you see market corrections? Did you pay in full?
There are floating periods that typically start within 50 days of closing. If the market corrects itself in this period, lower rates could be considered.
Haha 5% being high? I got a place years ago in 2009 (no longer have it) at 5% and everyone back then was ranting about how historically low the rates were back then. Back in the 80’s my parent’s first loan was I think 16%? That was normal back then. Cheap money these days, it’s partly why everywhere else prices are blowing up (CPI, for example).
You'll need to pay fees to lock the rate that early right? If yes it's worth running the numbers making some projection. I think rates will keep going up. If you can afford the monthly with 6% rates, you could also just take whatever it is in August and hope to refinance later.
Yes. There are lock in prices for ARM loans. 30 yr fixed loans are devoid. The rates offered on the lock in period are higher as well, since they account for a certain percentage of the lock in price
I see, honestly I think it's really dependent on your financials. 4% is great for sure, but also it increases the horizon for refinancing, since the probability of the rates getting lower than that any time soon decreases. If you can afford higher rates another strategy would be to be fine with a high rate, making the assumption it'll go down in a couple years or so. Bottom line is run the math and find out how much cash you need + monthly you'll pay in each scenario. For the August scenario, no one knows but I think it's safe to assume rates will be 6+%
How closing date can be after aug 2022 if house lasts max 1-2 week on the market
It must be a new construction?
Sorry for the confusion. Updated the description