How To Use Construction Mortgage Loans To Finance A New Home Building Project

1. How To Use Construction Mortgage Loans To Finance A New Home Building Project Construction mortgage loans are short term loans that finance the cost of erecting a new building. The construction loan is paid off once the building is complete. These loans are designed to cover only the cost of constructing a new building. The construction of the new building is usually paid from the proceeds of a usual mortgage loans. Normally you are expected to pay interest for the duration of the construction stage. The balance of the loan is due when the construction is completed. the local government issues A certificate of occupancy After the completion of the balance of the loan. The certificate certifies that the building have met all the building and zoning laws and thus set to be occupied. Finding a construction mortgage loan on your own is not the right thing to do. OE Mortgage can help you. Construction loans usually have a variable interest rate. The interest rate is seldom hinged to the prime rate or a similar short term interest rate. During the period of construction one only has to make interest payments. But If the land that the building is going to be built is owed by you in that case you can use the land as equity on the loan. Read More http://www.strategyfreaks.com/finance/how-to-use-construction-mortgage-loans-to- finance-a-new-home-building-project.html