One-time close products often lock through the build; two-time close locks permanent rates near completion. See options and market risk trade-offs.
Can I Lock My Rate on a Construction Loan? | 2MG
One-time close products often lock through the build; two-time close locks permanent rates near completion. See options and market risk trade-offs.
Can I Lock My Rate?
Rate Locks Work Differently by Product
At a Glance
One-Time Close vs. Two-Time Close Rate Strategy
Rate Lock Timeline Through Your Build
Keep Exploring
Related Blog Posts
Frequently Asked Questions
Compare Rate Lock Options for Your Build
One-time close products often let you lock a rate — or a construction-plus-permanent structure — for a set period covering the build, with float-down options varying by lender. Two-time close files carry separate construction and permanent rates; you typically lock the permanent rate near the end of construction. Long builds may need extensions, and two-close borrowers face market risk if rates rise.
On a one-time close construction-to-permanent loan, many lenders let you lock the permanent rate at closing — or within a defined window — for a period long enough to cover the build. That protects you from rate increases during construction, though float-down provisions if rates drop vary.
Two-time close borrowers face a different picture. The construction loan has its own short-term rate — often adjustable or interest-only. The permanent mortgage rate is locked separately, usually when you apply for the take-out loan near completion. If rates rise during your build, your permanent payment could exceed original projections.
Long builds may outlast your lock period. Extensions are sometimes available for a fee. Ryan and Steve align your lock strategy with the builder timeline and compare one-time vs. two-time close options for your situation.
The product you choose determines when and how you lock.
Know when your rate is set and what happens if the build runs long.
Step
Compare close types, payment timing, and whether construction fits your goals.
2MG Daily
Recent articles on construction rates, locks, and build financing.
No related blog posts yet. Check back soon for the latest updates.
Ryan & Steve walk through one-time close vs. two-time close rate strategies — including lock periods, float-down options, and extension rules — so you know your payment before you break ground.