Browse Forums Home Finance 1 Jan 25, 2009 9:07 pm Hi Everyone! We are moving for real this year yay yay!! Have had a small look around at some established houses and also thinking of building to get what we really want ie corner block, house layout etc..
We only have a 30K mortgage on our house and are not sure how it works when you build & want to stay in our home whilst building. How does the mortgage work, how much will we need to give the bank once we do sell etc? Thanks in advance! Re: Construction Loans? 2Jan 25, 2009 9:26 pm Quote: We borrowed nearly all of the money for ours but situation perhaps a bit different - the credit union had our morgage for previous house although it was almost paid off, at their suggestion we redrew on that mortgage for the land contract, not sure why now and then drew up another mortage for the house contract when construction started, I think by doing it this way they exempted us from paying LMI. When we sold our previous house we paid those funds onto new morgage. I have copied and pasted what I wrote in another thread, sounds like your situation is similar to ours and this is what worked for us. By doing this you only pay one mortgage payment which covers old and new house as amalgamated loan - not sure if there are any 'rules' about how much of the sale funds you put on new house; in our case we put most of it, kept back some funds for things like shed, pergola, new car. In fact we could of paid off all of new mortgage but seemed silly to do that and then take out another loan for a new car a few months later. Re: Construction Loans? 3Jan 26, 2009 2:36 pm Yolly Hi Everyone! We are moving for real this year yay yay!! Have had a small look around at some established houses and also thinking of building to get what we really want ie corner block, house layout etc.. We only have a 30K mortgage on our house and are not sure how it works when you build & want to stay in our home whilst building. How does the mortgage work, how much will we need to give the bank once we do sell etc? Thanks in advance! A bridging loan can help you to this. Helyn apparently did it another way tapping into their equity and substituting their security for the home loan once new home was completed. Can you give advice on how to get missing certificates needed for a form 21? Our bank requires us to provide one but we are missing 4 building certificates from our first… 3 71811 DIY, Home Maintenance & Repair That laser level looks lovely! We bought one for less than a quarter of that price off eBay. It worked really well for us and it's still going now, five years later. After… 1 16711 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5327 |