Holding back some of the payment until final check-off
Posted: Tue Sep 17, 2002 2:13 pm
Hoping for advice on this one -
We plan to replace our 77 Fleetwood Barrington with a new Karsten triplewide, on our land. We don't own the land free and clear; instead, we're refinancing the original mortgage, and adding the house to the new one.
The dealer - and their finance arm, which originates mortgage loans - want 10% down and the balance on delivery. I have no doubt that they will happily release funds (from the left hand to the right) - but this takes away any power I have to make sure the setup and finish are proper.
One alternative we found was to go through the business bank my wife works for - however, they do not want to issue a check until all is complete (we would come up with the 10% from our own pocket).
A second alternative looks to be a construction loan - but that seems fairly more expensive. The difference in cost between the two initial choices is not huge - 1/4%, and about $1K in fees.
Your thoughts?
Thanks in advance,
Mac & Belinda
We plan to replace our 77 Fleetwood Barrington with a new Karsten triplewide, on our land. We don't own the land free and clear; instead, we're refinancing the original mortgage, and adding the house to the new one.
The dealer - and their finance arm, which originates mortgage loans - want 10% down and the balance on delivery. I have no doubt that they will happily release funds (from the left hand to the right) - but this takes away any power I have to make sure the setup and finish are proper.
One alternative we found was to go through the business bank my wife works for - however, they do not want to issue a check until all is complete (we would come up with the 10% from our own pocket).
A second alternative looks to be a construction loan - but that seems fairly more expensive. The difference in cost between the two initial choices is not huge - 1/4%, and about $1K in fees.
Your thoughts?
Thanks in advance,
Mac & Belinda