Construction loan

[Ernie Giesker]

We are in the process of building/buying a manufatured home in northern California. We own the land, 40 acres, our credit is excellent and are going to live in the home. The company we are going thru for financing is charging us 8 percent for the constructing loan! I don't know that much about financing but with interest rates at an all time low it seems to me this is to much! I questioned the title company about this and was told this was the best they could do. Any comments, tips or help would be greatly appreciated as this is really bugging us. Thanks to all, Ernie

[JohnnyJ]

We just finished our home in February. Our construction loan was an A.R.M. at
3.5% APR. We converted to 5% permanent loan after the construction completed
and we were moved in.

Granted, our loan is in Alabama, but nationwide interest rates are still very low.
You might want to inquire as to why your rate is so high. If you get an answer
like "that's what the rates are today," then try somewhere else. If you have a bumpy
credit history, that could be the reason. In todays market 8% is just to high.

good luck

[Craig in NorCal]

We are in construction process now. Construction loan is @ 3.9%.
Converts to 5.3% fixed 30yr.(ATM Mortgage, Sacto.)
Good Luck,
Craig

[rmurray]

Construction loan terms vary substancially...thankfully they are for a short time and rate is not too important..

Cost should be considered in total...rate..points..fees...on and on..then compared...Often the rate depends on the cash commitment you are making..

Candidly...I have seen many construction loans...and I have never seen any as low as the other posters mention here....especially when all costs are considered...They got unusually good loans for sure..Usually the rate for construction loans is in the 10% range with low closing or no closing costs..

[Tanya]

We were not having much success as far as good rates looking independently, both nationally and locally. But our dealership was able to get the best rate for us through the banks they have relationships with. Especially since one of them has a new office in town and is eager to get business. We were pre-qualified at 5.5% 30 yr fixed, no money down, with only 25 per month PMI. Have you tried going through the MH dealership?

[Craig]

who are you going through to get a loan 5% loan. I have excellent credit. best I was able to close on last month was 6% for 30 years. did you pay points ?
maybe I should consider refinancing.

thanks

[Craig]

who are you going through to get a loan 5% loan. I have excellent credit. best I was able to close on last month was 6% for 30 years. did you pay points ?
maybe I should consider refinancing.

thanks

[rmurray]

Rates are rising now...best beginning quotes for mortgages are now at 6.5%..for fixed rate 30 year notes..This is a rise of 3/4% in the last 10 days...Lock in your rates NOW..

[JohnnyJ]

I went through Regions Mortgage.

[Tanya]

I believe our pre-qualification was from Wells Fargo