How and When is a Simple Interest Calculator Used During the Construction Phase
Interest Only Construction Loan Calculator
During construction a construction loan's payments are based on the loan amount actually drawn. It is therefore difficult to estimate what the payments will actually be as the loan amount is subject to change at any
Furthermore, normally no payments are made during construction but rather applied to the payment reserve account that is set up and included in the loan amount.
A basic and simple to use Construction Loan Amount Calculator is available here.
A good way to estimate the total payments is to take 70% of the loan amount and then calculate the interest only payments using the calculator on this page.
Construction loans have calculations that are are a good deal more involved than a simple purchase or refinance mortgage loan amount.
Construction lenders calculate the actual construction loan amount after you answer some simple questions.
The interest only calculator on this page uses Java Script. If you have set your browser not to allow Java Script then you will get a warning asking you if you would like to allow the script to run. All you do is allow the script to run temporarily and the calculator will work.
Qualifying for a mortgage loan involves debt ratio calculations that very slightly from one financial institution to the next. In most cases the borrower's debt ratio is analyzed using the fully amortized payment.
New Home Construction
Construction and take out financing of ground up residential, owner occupied properties, up to four units.
Major remodeling loans for currently owned or purchase and rehabilitation of residential properties, up to four units.
FHA's rehabilitation loan program for currently owned homes and purchase transactions of up to four units.
Modular, manufactured & fifth wheel homes. What are the differences? Is financing be available for them?
Bad Credit Loans
Construction loans are available for damaged credit, but things can work very differently in this case.
Builder Construction Loans
Also known as spec loans these are for speculators who plan on building several homes or a condo project.
Lot Loans for when you are not ready to build, but the opportunity presents itself. For up to Four Units.
Stated Income Loans
For hard to document income or very complex combination of corporate and/or trust and personal returns.
Typical closing costs for a construction loan are a little different from conventional mortgages.