Assessing long rate locks - would appreciate input
Realize that lending varies by geographic location, but would like some input on our situation.
We are building a new house. Builder finances it entirely, other than the (signficant) sum of money we gave him at contract signing. We'll need a new mortgage when we close in early May. With rates so good right now, we are looking into a long rate lock. The long rate lock periods seem to be 90, 120, 180 days out. It's now about 155 days til we close in May, so we'd be looking at the 180 day lock.
If it matters, we have an excellent credit score, very little debt and we will have about 40% equity in this new house.
I've learned that at least some of the big, national lenders do not offer long rate locks and/or do not do loans on homes under construction.
I've spoken with a few local banks so far, and I learned about one in town that offers the following:
180 day lock. 30 year fixed rate, which today is 4.5%. No points. Rate does not change due to the long lock period. Fee for the lock is 1/2% of the value of the loan. This fee is not refundable. There are other fees associated with the loan that seem pretty standard. I've spoken to a few other local banks and they do not offer as good a deal. They either charge a higher lock fee or the rate is higher than today's rate for a regular lock period.
My question is, does this offer seem like a good one? Wondering if I ought to search long and hard for a better deal. Also wondering if you think it's wiser to wait til closer to closing, e.g. til 120 days out to have a lower lock fee (1/4% vs. 1/2%). I know that requires a crystal ball, but there are some who say rates ought to stay low for at least a few more months. Any comments? Thanks much.