Construction-to-Permanent Loan Rates
|Rate "As Low As"
|APR* "As Low As"
|15 Years Jumbo
What type of loan is best for construction?
Construction Loans Compared
|Type of loan
|Homeowners who want to save on closing costs and lock in mortgage financing
|Those who have a large amount of cash on hand or who intend to pay off the construction loan with the sale of their previous home
How do you calculate interest on a construction loan?
You can calculate an approximate interest-only payment in the following way: Multiply the dollar amount advanced on the loan by the interest rate expressed as a decimal, and then divide that amount by 12.
What are the disadvantages of a construction loan?
Construction loans typically have higher interest rates because unlike traditional loans, they are not backed by collateral since the property has not been built yet. They are also viewed as being riskier because the loan must be paid in full at the end of the term.
What is todays interest rate?
Current mortgage and refinance interest rates
|10-Year Fixed Rate
|30-Year Fixed Rate FHA
How do payments work while you are building a house?
During the construction phase, borrowers make interest-only payments. These types of loans can be much more expensive than traditional mortgages, so if you decide to go in this direction, shop around, compare rates and find the best deal before you pull the trigger.