X

Last market hits the finish line! A final update for HSH's Home Price Recovery Index.

Last market hits the finish line! A final update for HSH's Home Price Recovery Index.

Construction and permanent financing

Q: At what interest rate could I get a loan for $100 thousand, 30 yr fixed if I own the land and am a contractor?

A: It's not clear what you are trying to accomplish. If you are building a home, you'll probably begin with a construction loan. These short-term loans often run a year or less, are usually based on the Prime Rate and you typically pay only interest during the construction phase. Once the home is completed, you then would generally get the market interest rate for the "permanent" financing. The construction and permanent mortgages can come from different mortgage lenders, but there can be benefits for using the same one, such as a single closing.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: Can my friends and I buy a house together?
JUL 18, 2021
A:

The answer is "yes," you can certainly all buy a house together.

Read More
Q: What is the difference between "rate" and "APR"?
APR 26, 2021
A:

APR is perhaps the most misunderstood part of mortgage finance. "Rate", or more properly "contract interest rate" is the actual rate of interest you are being charged...

Read More
Q: How do I find out who owns my mortgage?
MAR 15, 2021
A:

The owner of the loan is most often the "investor" -- the entity who put up the actual funds to make your mortgage happen.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen