Construction Loan Article Center

Friday, December 01, 2006

15. Will Principal and interest be included in my construction loan payments?

Principal and interest payments may not necessarily be included in your construction loan payments. Actually, your construction lender may allow interest payments only until your home is completed. Usually interest is charged only on the amount of funds used. This is something you will need to review with your construction lender. Interest on our Construction-to-Permanent Loan is charged based on the funds used. Payments are interest-only during the construction period, converting to principal and interest payments upon completion of the home.

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