Making the financing process easy and pleasant is as important to MasterCraft as helping you select and build the home that’s just right for you. That’s why we’ve partnered with three preferred lenders who offer mortgage information, options, and advice along with a special financing offer exclusively for MasterCraft homebuyers.
The financing program locks in the current interest rate for up to eight months prior to closing on conventional and VA loans up to $620,000. In addition to the 8-month rate lock, buyers who purchase a new MasterCraft home in St. Augustine or St. John’s County, FL and use one of our preferred lenders, are eligible to receive up to two percent of their loan amount towards closing costs.
Whether you’re a first-time homebuyer or you’re trading up, locking your interest rate helps you understand how much your mortgage will cost each month. After all, nobody likes surprises when trying to manage the household budget – especially when it comes to paying the mortgage.
Why Now is the Time for New Homebuyers in Jacksonville to Consider Locking Your Interest Rate
Most people don’t realize that the earlier they think about locking the interest rate on their mortgages, the better. Buyers’ first priorities are typically finding the perfect neighborhood, choosing the right floor plan and selecting upgrades and options. Financing usually comes later. After all, there’s plenty of time for due diligence on mortgage terms, interest rates and special offers before closing, right? Well, not exactly.
If you’re thinking about purchasing a new home or already have a contract on one, now is the time to look into locking in your interest rate. Although interest rates were at a low in 2016, the recent election, an improving job market, and higher confidence in the economy have caused interest rates to increase steadily. It is expected that in 2017, 30-year rates around four percent will become the new benchmark versus rates in the three percent range that we’ve seen for a while. You need to move quickly so you don’t end up paying more than you have to on your mortgage.
What It Means to “Lock In” Interest Rates
Let’s say that you just signed a contract on new home construction. A vacant lot is waiting where your home will be finished and ready to close in nine to twelve months… or even longer. A lot of fluctuation can happen to interest rates in nine to twelve months.
Locking your interest rate means that your lender has set your mortgage rate and discount points for a specified period of time. Your lender’s commitment protects you from a fluctuating market. If interest rates rise between the time your contract is executed and your closing date, your lower, agreed-upon rate is protected. The bank can’t increase your rate. On the other hand, if mortgage rates decline, you won’t be eligible for the lower rate either. As long as you close on your new home within the contractual period, your interest rate is considered “fixed” and will be your rate for the duration of your mortgage.
When Does it Make Sense to Lock in my Interest Rate?
It would be nice if we had a crystal ball to help us predict the rise and fall of interest rates. In reality, though, all we can do is follow the market and make the best decisions based on the information at hand. Here are three signs that indicate locking in your mortgage rate is a good idea:
- Sign No. 1: You’ve made an offer and have an executed contract
- It makes sense to lock in the interest rates on your mortgage after you’ve made an offer that’s been accepted. By then, you’ll have a good idea of when your home will be ready to close.
- Sign No. 2: Interest rates are rising
- If you see that interest rates are rising, lock in your interest rate so you can avoid paying more than necessary. Rates are currently trending upward.
- Sign No. 3: Interest rates are volatile
- When interest rates have a recognizable pattern of moving up or down, the decision about whether or not to lock is pretty clear. But, if rates are vacillating up and down wildly, you’ll welcome the stability of a rate lock.
How Do I Get More Information on Financing My New Construction Home?
As an award-winning new homebuilder in St. Johns County, Florida, with new communities in St. Augustine and surrounding areas, the team at MasterCraft Builder Group strives to help its customers make educated financial decisions about their new homes. For more information about purchasing and financing new homes for sale in St. Augustine, Florida or in one of our other communities, we invite you to contact us online or call 904.274.2773 to learn more.