A mortgage strategy where you lock in your interest rate with a ceiling, protecting you from rate increases while your house is being built. You get a guaranteed rate now but can take advantage if rates drop before closing.
Interest rates generally can't be locked in until you're about 30 to 60 days out from closing. But with a lot of people building houses and interest rates going haywire, it's a bad combo. We have a little trick that can help. This is a guy we locked in back in October at a 3.5% VA rate. Back then it was about half percent higher than what the current rate is we could have gotten. But he wasn't closing then. His house isn't going to be built until April. So we put a ceiling on his interest rate. If the rates currently were lower than this, we would get rid of that. That's the unique part. Most basin lenders can't do that. They're still stuck. We could get rid of it, take the lower rate, but because the market rates are now in the low fours for him, we can keep that rate. So it created a ceiling, created protection, helped him save.
