Construction Loans 101: Adjustable Rates

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.

1. 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.
2. 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