Thanks for the info. This is all so complicated, buying a condo that won’t be completed for several years. I need to give this serious consideration.

MJ

locking beyond 60 -70 days typically requires an additional upfront lock fee (on top of the higher rate). I’m checking out a rate that shows the additional upfront lock fee at 1.625% for 360 days. This would be 1.625% on top of your origination/discount (if you have one). For example, if your loan amout is $400,000, the additional lock fee for 360 days would be $6,500 (plus discount/origination). It’s expensive. The lock fee is due at the time when you lock in the loan AND it’s non-refundable. So if you do not buy the home or if the rates improve, you’ve just lost a significant chunk of change.

You may be better off “floating” with so much time ahead of you. Rates may not be far from where they are today. The difference of 0.25% in rate on $400k loan is about $67 in the monthy payment.

And, you could always use the $6500 to go towards points when you’re a few months away from locking instead of plopping that money down now.

Sometimes on site lenders might offer locks this far out in advance without dinging you the upfront fee. This could be a time to consider one if you would like to lock in now. If they don’t offer it, then shop around.

Good luck!

I am thinking about buying into Escala but how would I get financing to close a year or so from now? Can I lock in a rate on a contract to the condo? What kind of questions to I need to ask to get the best deal on a loan?