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Old 11-13-2011, 05:00 AM
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Mike Boehler
Senior MemberCaptains Club Member
 
Join Date: Jan 2004
Location: Sharon Springs, NY
Posts: 4,515
Default Mortgage Advice? Brokers?

I'll admit up front that mortgages aren't my expertise, or else I wouldn't be asking advice on a boating forum

I'm selling my home, buying a new home (actually building a modular home)

I've spoke to my local mortgage banker, I'm not happy with the rate, but it was a construction loan she was quoting me. I'm not sure I need a construction loan.

Are construction loans more expensive (points and rate) than conventional mortgage?

Wife and I have 780 credit and we want to build our new home without selling the old home.

I have some cash, but not quite enough to make the full purchase of the new home without selling the old home. I have equity in the old home that I can use for the new home until the old home sells, but in its totality, when you add up all my credit available and cash available, I'm still a bit short of the new home total cost (which is why I'm taking a mortgage in the first place when the smoke clears)

I have enough cash in my business to pull this off, but don't think I could sleep at night if I raid my business for a lot of money.

  • Should I take the construction loan, at the higher rate and roll it over to a conventional mortgage?

  • Should I borrow money from individuals to complete the home and then get a conventional mortgage?
Why do I see internet rates of 3.75 fixed for 15 years, when my banker quoted me 4.75? Its not my credit score, is she just high? Oh, and her points were higher as well, so that can't be it.

Anyone have more experience then me?
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