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Construction Loans 101: Adjustable Rates

Homebuying 2 min read

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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.

  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.

———
Source:
http://www.investopedia.com/articles/personal-finance/062614/should-you-buy-or-build-home.asp

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