Welcome to Construction Loans Guide
Current Construction Loan Interest Rate Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
The Difference Between Construction and Mortgage Loans
from:There are so many things that you need to know when you are thinking about owning your own home. Since it is such a big purchase, there is a lot of paperwork and decisions involved. One of the bigger decisions is whether or not you want to build a house, or buy one that has already been lived in. Most people go with the latter. This is because they think that they could never afford to build their own house. After all, most people who do are very rich. This is only because rich people know the real truth. Although there are differences between construction and mortgage loans, they are both accessible to everyone.
If you can qualify for a mortgage loan, you can qualify for a construction loan. Most people don't even realize that. The biggest concern that people have is how they are going to afford to live in an apartment while the house is being built. They assume that you pay monthly loan repayments like you would with a mortgage loan. That is simply not true. The biggest difference between construction and mortgage loans is the repayment schedule.
Mortgage loans need to be repaid in monthly installments. These installments usually go on for about thirty years. Construction loans are very different. While the house is being made, all you pay is interest. This means that you will be able to afford other accommodations while the house is being constructed. Once the house is done, though, things are a different matter. Instead of paying in installments, you have to pay the loan of completely. This is another big difference between construction and mortgage loans.
While there are differences between construction and mortgage loans, there is a chance that you could have both. There is such a thing as a construction to permanent loan. This means that the loan acts as a construction loan while the new house is being built. The changes when it is done, though. Instead of paying it all at once, you can pay it in installments because it turns into a mortgage loan. This is the best and most affordable option.
Yes, there are all sorts of differences between construction and mortgage loans. That does not mean that any one of them is better than the other. It really depends on your preferences. If you would rather not wait for a house to be built, a mortgage loan is perfect. Then again, if you would rather have a house that was made to your exact specifications, then you should go with a construction loan.
Current Construction Loan Interest Rate News
Fed Signals More Action - Wall Street Journal
 Boston Globe | Fed Signals More Action Wall Street Journal - Pushing down long-term interest rates could spur business and consumer demand, Mr. Bernanke said. Many consumer and business loans are closely linked to ... Video: Money Minute: Recession, Paulson, Oil Mark Naison: Its Time to Use the "D" Word: "Recession" Doesn't ... Dec. 2 editorial: It's official: US has been in a recession all year |
Fed paints dreary economic picture - CNNMoney.com
 HispanicBusiness.com | Fed paints dreary economic picture CNNMoney.com - Many economists say falling prices, while a sign of economic distress, give the Fed more leeway when it comes to further interest rate cuts. ... Video: Money Minute: Beige Book, Online Sales, Yahoo Fed: Economic conditions decline in Ohio, surrounding areas |
UPDATE: Builders Soar On Lower Rates, But Pain Persists - CNNMoney.com
UPDATE: Builders Soar On Lower Rates, But Pain Persists CNNMoney.com - This week's mortgage flurry comes largely from homeowners with higher interest rates who finally consider it advantageous to refinance. ... |
Freeport-McMoRan Copper & Gold Inc. Announces Revised Operating ... - MarketWatch
Freeport-McMoRan Copper & Gold Inc. Announces Revised Operating ... MarketWatch - In response to current market conditions, FCX is deferring construction activities. The project was previously expected to commence in 2010 with full ... |
EUR: 50bp vs. 75bp Rate Cut - Global Forex Trading
 BBC News | EUR: 50bp vs. 75bp Rate Cut Global Forex Trading - The Eurozone and UK are expected to cut interest rates tomorrow and weakness in those currencies is pushing the dollar higher. Even though US stocks closed ... Daily Currency Analysis |