Construction
loans are one of the most diverse types of loans out there in the
mortgage industry. So many factors of the construction project are used
to determine the terms and conditions the lenders
will provide if and when they decide to proceed with the loan.
For
instance, the size of the job and the amount of the loan, will it take
two months or two years? Are you doing the job yourself, or are you hiring
a contractor?
Are you purchasing the land
the construction will be built on? Where is the location of the property?
Etc.
All
of the above scenarios play a role in the decisioning process.
For
construction loans on large projects, the interest is paid only when the
money is used. For example, the contractor will purchase the material
to build the foundation of the project, you would only pay interest on
the amount of money the contractor used to build the foundation, not the
entire amount of the construction loan.
Once
the job is done, the total amount of the job is amortized into one monthly
payment including principal
and interest.
If
you have a relatively small project, such as an addition
to your existing home for less than $100,000.00, you might want to
consider a home
equity loan. It is a lot less of a hassle and paperwork. It will also
go through a whole lot quicker.
If
you are considering going with new construction, I beg you to take your
time and be very careful. Do your homework and educate yourself as much
as you can about the process. And, as always, shop around for the best
deal.
Create an Oasis describes how to quickly and easily choose, build, and use a simple greywater system. Some can be completed in an afternoon for under $30. It also provides complete instructions for more complex installations, how to deal with freezing, flooding, drought, failing septics, low perk soil, non-industrialized world conditions, coordinating a team of professionals to get optimum results on high-end projects, and 'radical plumbing' that uses 90% less resources.
By Art Ludwig
The indispensable bible for keeping a home in tip-top shape, it is the time- and money-saver every homeowner needs. It functions as a repair manual, an evaluation guide, a compendium of household hints, an emergency reference, and a homeowner's encyclopedia. Over 3,000 illustrations.
By
Create an Oasis describes how to quickly and easily choose, build, and use a simple greywater system. Some can be completed in an afternoon for under $30. It also provides complete instructions for more complex installations, how to deal with freezing, flooding, drought, failing septics, low perk soil, non-industrialized world conditions, coordinating a team of professionals to get optimum results on high-end projects, and 'radical plumbing' that uses 90% less resources.
The indispensable bible for keeping a home in tip-top shape, it is the time- and money-saver every homeowner needs. It functions as a repair manual, an evaluation guide, a compendium of household hints, an emergency reference, and a homeowner's encyclopedia. Over 3,000 illustrations.
