Construction Loans 101: Adjustable Rates
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Construction-to-Permanent Loan
First Bank offers a One-Time Close Construction-to-Permanent Loan.** With this loan, the cost of your lot, construction, and permanent mortgage is covered in a single loan. Our construction loan rates vary, but you can choose from a variety of fixed or adjustable rate loan options for your permanent financing.
Our One-Time Close Construction-to-Permanent Loan consists of two phases: the construction phase and the permanent phase.
- During the construction phase, you will only make interest payments. When the construction is complete, the permanent phase modifies the loan into a permanent loan.
- During the permanent phase, the construction loan will be converted to a permanent loan.
Other benefits of First Bank’s One-Time Close Construction-to-Permanent Loan include:
- No prepayment penalties
- A single set of closing costs
- Flexible use to finance a primary residence
- Ability to purchase your lot
Benefits of Building a Home
If you are thinking about building a home, consider these benefits:
- Customization—Building a home gives you the opportunity to make everything look exactly how you want it.
- Low Maintenance Costs—Because homes are built with all new materials and typically have all new appliances, you will spend less on repairs and updates.
- Efficiency—As technology improves, new homes are becoming increasingly more energy efficient. When you build a new home, you have the opportunity to include as many green materials as you want.
- Value—New homes have a longer life expectancy so they typically appraise higher than older homes.
Ready to get started? You can begin your mortgage application or visit a First Bank branch to speak with a mortgage loan expert today.
*Equal Housing Lender. NMLS #474504.
**Loans subject to credit approval.
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Source:
http://www.investopedia.com/articles/personal-finance/062614/should-you-buy-or-build-home.asp
