The Real Estate Encyclopedia
Can I Lock in my Interest Rate for the Mortgage Loan While the Home is Built?
Category - Home Ownership Questions - Building Your Home FAQ's
Most banks offer construction loans designed to cover the period of the construction of a new home.  Search for lenders that will allow you to lock in your mortgage rate for up to 12 months during construction and enquire what their approach is if the rates drop during that period. Be sure there are no hidden penalties.

Locking in your rate has the advantage of avoiding the risk of rising rates. Make sure your lender also offers a “float-down option,” which allows you to take advantage of rate drops.
 
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Home Ownership Questions - Building Your Home FAQ's
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