when a lock expired why can't i get the market price ?


I did a stupid decision of locking an interest rate w/ the builder’s lender @ 5% w/ float down of max ceiling .375 (4.625%)

That lock is expiring : 21 Feb

As usual the builder is missing the delivery date more than 3 months and the home is not going to be ready by end of March. When i reach out to the builder’s lenders , they are cheating me that they cannot give the market price even after the lock has expired.

There is no * condition apply* statement in the loan document on what will happen after the lock is expired. When can i get market rate after the locked is expired ? why are lenders not ready to give the market rate after the locked is expired ?


This is, sadly, not an unusual situation on new construction, particularly when the builder’s lender is involved. Once they have you “roped” into the deal with free upgrades, etc to do the loan through their preferred lender, there is little/no incentive for them to give you any breaks on lock extension, renegotiations, etc. In general, lenders incur a cost to lock loans, and so are not thrilled about renegoting an expiring lock. Your likely only recourse if you want to lock at current rates is to consider another lender, which typically means you may forfeit any incentives in your sales contract for using the builder’s lender.

Answered over 3 years ago
Ted Rood
1482 1 8
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