Browse Forums Home Finance Re: Construction Loan payment question 2Oct 09, 2009 10:10 am hiya, generally you pay an interest only loan. your repayments will be however much each draw down adds up to....you start paying interest straight away on this amount....by the end of the build (your last draw down) will be the final amount to make your loan complete. regards building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/ Re: Construction Loan payment question 3Oct 09, 2009 10:18 am singlemum2daughters hiya, generally you pay an interest only loan. your repayments will be however much each draw down adds up to....you start paying interest straight away on this amount....by the end of the build (your last draw down) will be the final amount to make your loan complete. regards I don't understand why id pay only interest?? why wouldn't i be paying off the actual house.... if i was just paying interest that money is going down the drain Newbie Re: Construction Loan payment question 4Oct 09, 2009 10:29 am ofcourse it depends who yu go with, but you dont have a full mortgage so to speak, that all becomes relevant on the last draw down. but to be honest this should have been all explained to you when getting finance. if not, its something you should have definately asked building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/ Re: Construction Loan payment question 5Oct 09, 2009 10:37 am Paying interest is always like money down the drain but you will always have to pay it whether your paying off the actual home or not. 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 19097 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11869 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6688 |