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n. Illinois | if your only locking in a 3 yr rate on a 20 to 30 year obligation your taking risk that the rate is higher after only 3 years. Vs locking in a rate that transfers all of that risk to the lender. We are entering a period where interest rates can not be maintained at their current levels if the Fed doesn't print a massive amount of new fake money which leads to inflation and higher interest rates. Interest rates cycles are roughly generational so you have 25-30 years of lower rates (which we just had) followed by another 25-30 years of higher rates (This is where I believe we are headed) so why take the risk?
If I am wrong and interest rates do drop, Just go out and find a new lender at lower rates or the current lender will accommodate you with a lower rate with minimal costs in relation to the savings. The only entities that won't do that are Life Insurance companies via their prepayment and or make whole agreements.
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Land loan
