Find Big Savings with a Full 12 Months Rate Protection

Successfully navigating the housing market can be a challenge. That’s why, for a limited time, Phillippe Builders has partnered with our preferred lender to make available a full 12 months of rate lock protection on new mortgages.

How can a rate lock save you money? Read on below for a helpful explainer.

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To Take Advantage Of This Offer…

Contact our preferred lender to see if you qualify. You’ll work together to structure a mortgage that is right for you. You can then proceed with confidence to plan your new home, knowing you have the flexibility to capture the best interest rate available prior to closing.

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What Is A Rate Lock Mortgage?

In a typical mortgage the loan amount is pre-approved and the interest rate is left to be determined on the closing date, meaning it fluctuates with the market. This creates a challenge for home buyers, who may budget monthly payments with the expectation of a rate that is no longer available at closing.

A rate lock mortgage allows you to lock-in a specific rate when you sign the purchase agreement. This means your interest rate, and your coinciding monthly payment amount, will not increase prior to closing on your home.

How Long Does a Rate Lock Last?

Typical rate locks cover a period of 30-90 days, which may be sufficient if you are purchasing a new home that is move-in ready. However, if you are building a new home you may want additional assurance that your rate will not increase before the closing date.

Having up to 12 months of rate protection allows you to enjoy the design process and schedule construction in the manner most convenient to you. A longer period also provides more flexibility should rates be expected to decrease.

Float Down Option

A float down option allows you to take advantage of any potential decrease in interest rates between the time you sign your loan agreement and the closing date on your home. By having the option to switch to a lower interest rate if one becomes available you can be confident of capturing the best deal no matter how much interest rates fluctuate.

How Much Could You Save?

As recent trends have shown, interest rates can be volatile. It isn’t uncommon to see a swing of up to 0.5% during a 60 day period. With that in mind, let’s consider the estimated cost of a 30 year mortgage under three scenarios.

30 Year Mortgage – $300,000 loan amount*

Rate	Monthly Payment	Total Interest
5.0%	$1,610 per month	$279,660
5.5%	$1,703 per month	$313,080
6.0%	$1,799 per month	$348,000

Were you to sign your loan agreement at 5.5% and prior to your closing the interest rate increased to 6.0% a rate lock could save you nearly $100 per month or $34,920 over the course of the mortgage.

Were you to sign your loan agreement at 5.5% and a lower interest rate of 5.0% became available, thanks to a float down option your rate lock could save $90 per month or $33,420 over the course of the mortgage.

Talk To An Expert And Find Your New Home

To see if a rate lock mortgage is right for you and take advantage of this limited time 12 month protection availability, contact our lending partner.

To find or plan your new home, browse our immediately available home listings, explore our communities, or talk to a Phillippe Builders Home Consultant to start planning your new home.