Interest rate changed on a new build. Options?

Quick background –

Parents decided to build a new house for them and my grandparents to live in

Interest rate was locked by the lender for a year (lock expired beginning of June 2021). Started at ~3%

They closed on the land, have a construction loan now, then will roll that into a mortgage (not familiar with new builds, but they won’t have full closing costs again from what I understand).

So the builder took too long and the house won’t be completed until October (originally supposed to be finished before the interest rate expired). So now that the rate lock expired its looking like they will have a much much higher interest rate than planned for.

May have to consult with an attorney and see if there’s anything legal in the paperwork (doubting it).

Second odd thing – they got approved for a loan an X amount at X interest rate. The monthly payment will be several hundred dollars higher now. Seems like it’d be hard to qualify.

What do you all thing theyir options may be?!

submitted by /u/MothersNewBoyfriend
[link] [comments]

Quick background – Parents decided to build a new house for them and my grandparents to live in Interest rate was locked by the lender for a year (lock expired beginning of June 2021). Started at ~3% They closed on the land, have a construction loan now, then will roll that into a mortgage (not familiar with new builds, but they won’t have full closing costs again from what I understand). So the builder took too long and the house won’t be completed until October (originally supposed to be finished before the interest rate expired). So now that the rate lock expired its looking like they will have a much much higher interest rate than planned for. May have to consult with an attorney and see if there’s anything legal in the paperwork (doubting it). Second odd thing – they got approved for a loan an X amount at X interest rate. The monthly payment will be several hundred dollars higher now. Seems like it’d be hard to qualify. What do you all thing theyir options may be?! submitted by /u/MothersNewBoyfriend [link] [comments]

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