Refinancing has its own costs, and nobody knows when rates will fall.
Many buyers lock in a builder's lower rate now and refinance later only if it makes sense.
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Can I refinance later if interest rates go down?
Yes, if rates drop and you still qualify, you can refinance to a lower rate later. Do not count on it, though. Buy a home whose payment works today.
More questions
- Should I use the builder's lender?Often it is worth a look, because the builder's best deals are usually tied to its own lender. You are free to use any lender, so compare them.Read the answer
- Are interest rates too high to buy a home right now?The builder buys your rate down. Their own lender offers a lower rate than most banks, and it is not a trick: the builder wants to sell the homes.Read the answer
- What is a rate buydown on a new home?A buydown is money paid at closing to lower your interest rate. On a new home, the builder often pays it.Read the answer
- When should I lock my interest rate on a new construction home?Usually once the closing date is firm, often 30 to 60 days out. A builder's special rate is often locked for you as part of its deal.Read the answer