Welcome to Construction Loans Guide
Mortgage Construction Loans 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.
Mortgage Construction Loans News
Bernanke: Weak housing has hurt consumer spending - Fox News
 USA TODAY | Bernanke: Weak housing has hurt consumer spending Fox News People are spending less because they are stuck in "underwater" homes, which are worth less than what is owed on the mortgage. And home values are falling because of foreclosures and tight credit — even in areas with lower unemployment. Tight Credit Conditions Impeding Housing and Economy Recovery New Fed Call on Housing Bernanke's speech to home builders |
TEXT-S&P puts 4 Su Casita securitizations ratings on watch negative - Reuters
TEXT-S&P puts 4 Su Casita securitizations ratings on watch negative Reuters Feb 10 - OVERVIEW -- We placed our ratings on three construction loan securitizations and one RMBS transaction serviced by Hipotecaria Su Casita (HSCCICB 06, HSCCB 08, Construction Loan Trust Series 2005-1's mezzanine notes and BRHCGCB 03U) on ... |
Uniform Mortgage Data Program (UMDP): Fannie Mae And Freddie Mac's New ... - NuWire Investor
Uniform Mortgage Data Program (UMDP): Fannie Mae And Freddie Mac's New ... NuWire Investor Fannie Mae and Freddie Mac, loan servicers under government conservatorship, are implementing a new Uniform Mortgage Data Program (UMDP) that requires lenders who work with Fannie or Freddie to input appraisal data collected from assessors. |
Debt Levels of Commercial Real Estate Borrowers Set to Increase 40% in 2012 - World Property Channel
Debt Levels of Commercial Real Estate Borrowers Set to Increase 40% in 2012 World Property Channel Most borrowers (74 percent) are sourcing primary loans or short-term construction loans (41 percent) followed by 30 percent sourcing a line of credit. The debt process is improving as commercial real estate borrowers report feeling satisfied with the ... |
Mortgage settlement is too little, too late for many - Los Angeles Times
 Los Angeles Times | Mortgage settlement is too little, too late for many Los Angeles Times By Tiffany Hsu, Los Angeles Times The massive mortgage settlement may be setting new national standards for loan servicing, but it may be too little and too late to help troubled homeowners. Many homeowners will see reductions in the principal they owe ... Ohio homeowners, foreclosure victims to get millions in bank settlement Banks Paying Homeowners a Bonus to Avoid Foreclosures: Mortgages |
Mortgage rates inch up from record lows this week - Las Vegas Review-Journal
Mortgage rates inch up from record lows this week Las Vegas Review-Journal The benchmark 5/1 adjustable-rate mortgage rose 3 basis points, to 3.05 percent. The benchmark 30-year fixed-rate jumbo was unchanged at 4.55 percent. All four of the above loan types -- the 30-year fixed, 15-year fixed, 5/1 adjustable-rate mortgage ... |
Bank of America declares living customer dead for last 3 years - DigitalJournal.com
 DigitalJournal.com | Bank of America declares living customer dead for last 3 years DigitalJournal.com In Oct. the Prosperity, SC man tried to obtain a loan from a mortgage company. It was at that time he learned he had been declared "dead." According to ABC News, the Bank of America had reported Livingston dead back in May 2009 and passed this ... Bank of America Declared Customer Dead for Three Years? Bank of America Declares Living Customer Dead |
Mortgage Rates for 30-Year Fixed U.S. Loans Decline to Record-Low 3.87% - Bloomberg
 Bloomberg | Mortgage Rates for 30-Year Fixed U.S. Loans Decline to Record-Low 3.87% Bloomberg Enlarge image Mortgage Rates for 30-Year US Loans Fall to Record-Low Mortgage Rates for 30-Year US Loans Fall to Record-Low Chris Rank/Bloomberg Home construction in Alpharetta, Georgia. Rates for 30-year US mortgages declined to the lowest level on ... Freddie Mac Bets Against American Homeowners Obama a no-show in the California housing crisis Mortgage Rates: Low Mortgage Rates Remain Stable After Solid Economic Reports |