Browse Forums Home Finance 1 Oct 09, 2009 11:42 am Hi there, We have got our Construction loan through CBA and I am just wondering if anyone knows why in 3 months my interest charges haven't changed even with 3 drawdowns happening/processed??? I know we are paying interest only until the full amount is drawn down but are we paying interest on the amount we have already drawn down or on the total loan amount??? Confused! Building Thread viewtopic.php?f=31&t=13002 Site start: 8th July 2009 Handover: 11/12/2009! 5 months total build time. 40 sqs of luxuary...Bliss! Re: Construction loan payments? 2Oct 09, 2009 12:16 pm You should only be paying interest on the amount you have borrowed to date. Re: Construction loan payments? 3Oct 09, 2009 1:13 pm I would be calling them to find out whats going on. Otherwise, there may not be enough money in the mortgage to cover all the building costs. The more that is in the mortgage (through draw downs), the higher your payments should be. To roughly work out what your repayments should be, you can use an online calculator or the following formula: ( The amount owed (x) percent interest rate ) / 356 = Interest per day Interest per day (x) number of days in the month. ie. If you owe $200,000 with an interest rate or 5.14% then: 200,000 * 0.0514 = $10280 (total interst you will pay in a year) $10280 / 356 = $28.88 (per day) Number of days in month = 30 or 31 so.. $28.88 * 31 = $895.17 (monthly interest only payment). Not 100% sure what happens if a draw down happens within the month or an interst rate rise occurs. If they adjust the amount (say 10 days @ $200,000 and 20 days @ $275,000) or just do it all on the higher amount. Re: Construction loan payments? 4Oct 09, 2009 8:18 pm Sierra I would be calling them to find out whats going on. Otherwise, there may not be enough money in the mortgage to cover all the building costs. The more that is in the mortgage (through draw downs), the higher your payments should be. To roughly work out what your repayments should be, you can use an online calculator or the following formula: ( The amount owed (x) percent interest rate ) / 356 = Interest per day Interest per day (x) number of days in the month. ie. If you owe $200,000 with an interest rate or 5.14% then: 200,000 * 0.0514 = $10280 (total interst you will pay in a year) $10280 / 356 = $28.88 (per day) Number of days in month = 30 or 31 so.. $28.88 * 31 = $895.17 (monthly interest only payment). Not 100% sure what happens if a draw down happens within the month or an interst rate rise occurs. If they adjust the amount (say 10 days @ $200,000 and 20 days @ $275,000) or just do it all on the higher amount. Called the bank and the above is exactly what I was told, all sorted, thank you very much, I appreciate your input! Building Thread viewtopic.php?f=31&t=13002 Site start: 8th July 2009 Handover: 11/12/2009! 5 months total build time. 40 sqs of luxuary...Bliss! The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19114 5 6823 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35332 |