About 45 days ago we put 80K down for a 150K home to be built. Builders lender gave us 4% ballpark rate. The math put our mortgage at about $535 per month which fits our budget. Even though the permits have been applied for, the loan is not yet finalized. Meanwhile we are watching the news and the lending rates are going up and up. We fear an eventual too high rate busting our budget. Did we screw up by putting so much down? How do we walk away? Can we hold the lender to the 4%? Any thoughts ?
It looks like the housing market hit its bottom a long time ago, and you are probably over leveraging your budget as the rates shoot rapidly higher. You should contact a mortgage broker to lock in your rates, are they will not be guaranteed for long.
