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Old 11-13-2011, 07:11 AM
  #4  
twobyfour
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Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
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Not sure why you wouldn't shop around for the best deal for a mortgage. But as stated above, const loans are generally higher for the reasons stated above. If you did the $500k const loan, you pay interest only on the amount you have withdrawn. In other words, if your first draw is $50k, that is what you pay the interest on. By the time you get to the end, you interest payments will be higher. Many banks offer const-perm loans. In other words, they will give you the const loan only if they get the perm loan. These are normally your best deals. With your credit score and finacial situation as you described, you should be getting the best rates available.. Remember, when banks compete, you win.
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