Construction Loans 101: Adjustable Rates

If you’re considering building a home, one of the more pressing concerns is the rate you’ll receive for a construction loan. For residents of the Carolinas, First Bank* has convenient locations to stop by for a discussion about your construction loan options. With our One-Time Close Construction-to-Permanent loan, you have the potential to build the house of your dreams.

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

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Construction Loans 101: Adjustable Rates

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Construction-to-Permanent Loan

Benefits of Building a Home

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