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Extended Interest Rate Locks Now Available

March 21, 2022
Young couple homeshopping on a laptop

At Brookfield Residential, our success is grounded in one thing: giving people the best place to call home. We’re committed to serving our customers from day one in their new home journey and beyond. After all, there are few things more exciting than buying a new home and we’re here to help ensure your experience is free from any unexpected surprises – and costs. In a housing market like no other, locking in your mortgage interest rate can potentially save you hundreds to thousands of dollars over time.

We are excited to share that a 270-day interest rate lock is now available through BRP Home Mortgage for all of our communities located in the United States. Since mortgage interest rates can fluctuate many times between when you file a loan application to when you actually close on your home, an extended interest rate lock preserves the rate in your mortgage loan offer giving you peace of mind as you navigate the homebuying and construction process.

Young couple consults with a financial advisor

What exactly is a mortgage interest rate lock?

A mortgage interest rate lock is a guarantee that a mortgage lender will honor a specified interest rate at a specific cost for a set time period.

What are the benefits of locking your mortgage rate?

The biggest benefit of locking your mortgage rate is that you’re protected from market fluctuations meaning your interest rate won’t increase during the construction process. This gives you peace of mind and security knowing exactly what your monthly payments will be helping you stay on budget and plan for the future.

Are there any risks in locking my mortgage rate?

Some lenders won’t let borrowers revisit their interest rate if the market changes. If interest rates drop but you’ve locked a higher rate, these lenders hold you to the higher interest rate. Fortunately, with BRP Home Mortgage, if rates improve after you’ve already completed a rate lock, you can relock the lower rate without any cost or penalty – this is called a “float down.”

How long can I lock my mortgage rate?

Typically, lenders will lock in rates for 30 to 60 days. With BRP Home Mortgage, you can choose from extended coverage options of 120 days, 180 days, or 270 days to secure your interest rate while your new home is under construction. The rate will stay consistent, regardless of market changes – as long as there are no major changes to the application for the loan (changes in income, credit score, loan amount, etc.).

Is the extended interest rate lock available to all homebuyers?

BRP Home Mortgage currently offers an extended interest rate lock on conventional conforming, high-balance conforming, FHA, FHA high-balance, and VA loans in all Brookfield Residential communities located in the U.S. 

What steps do homebuyers need to follow to take advantage of this extended rate lock?

Once you’ve found the perfect Brookfield Residential neighborhood, you’ll need to complete a loan application to get pre-qualified. After you’ve selected a homesite and entered into a sales contract, you can contact your dedicated mortgage loan advisor for interest rate lock options. While this does come with an initial rate lock fee of 0.50% to 0.75%, this will be credited back towards your closing costs at the time of closing.

Older couple laughing while sitting on a couch looking at a laptop

We know the homebuying process can come with a lot of questions, but we’re with you every step of the way! Visit the BRP Home Mortgage website and explore our collection of mortgage tools including interactive calculators, terminology glossary, and homebuyer tips. For any additional questions you may have, feel free to email us at info@brphomemortgage.com for assistance.

BRP Home Mortgage believes that everyone deserves a simple and straightforward home financing experience and you can rest assured that we will expertly guide you on a path to homeownership to create the best place to call home.

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