Welcome Guest ( Login | Register )Home   Search   Today's Posts   Mark All Threads Read

Construction Loans

Feb 18 2009 5:29pm#1 (permalink)

Ceri

Anonymous Visitor
Avatar for Ceri		are rates for construction loans any different?
Feb 18 2009 5:50pm#2 (permalink)

Daniel

Anonymous Visitor
Avatar for Daniel		I'm pretty sure they are the same, it's just a standard variable interest rate
Feb 25 2009 5:06pm#3 (permalink)

AgentOne

Anonymous Visitor
Avatar for AgentOne		Construction loans are different to other loans in that you usually only only pay interest while the building is going on. The loan will usually have a variable interest rate so it will go up or down depending upon the market. usually you borrow the final estimated cost of the property and draw on the money as and when you need it.

When the construction is completed you start repaying the principle as well as the interest. Obviously at this stage none of the principal has been paid off, you have only been paying interest up till now.

The bank I worked for offered a pretty good rate but some construction loans can prove quite expensive so I would suggest you check out a few a compare before choosing.

All times are in GMT+10:00

 

 

 

 

Warning: The views and opinions expressed on this web site do not necessarily represent the views and opinions of Colt Hudson Pty Ltd or those of its employees and associates. Views and opinions have been provided by members of the general public for entertainment purposes only. The information provided on this web site is general advice in nature and does not constitute financial advice . As such it has been prepared without taking into account personal circumstances, lifestyle, financial situation or needs. You should not act on any information on this site without first speaking to an authorised finance services provider.