I think I’m going to give my contractor a little more breathing room and hold off a bit on locking. I don’t want to get greedy though. We began this process in late 2007 when we found out the property where we are now building would be coming on the market. We then had to sit patiently on the sideline until the asking price dropped to the point where we eventually purchased it at over 28% off the initial list price. We never thought we’d be looking at interest rates at these levels. In fact, we were worried about the prospect of quite the opposite. By the time we closed on our construction loan in October it seemed likely that our interest rate which is tied to the prime was unlikely to rise anytime soon. Our adjustable rate is prime + 1% but there is a floor of 6%. These are crazy times we are living in.
