The marketplace has expanded to include many types of equity take-out financing, home equity lines of credit and construction mortgages to satisfy the latest growth in home construction. Whether you are remodeling a home that you own currently or are building a new home from the ground up, these types of loans answer the question of how to finance it. The very best terms will tend to be open or variable interest-only payments. This strategy lets you know that there are funds available when needed, but you are only charged interest on the money you use. When the project is complete and you know the exact principal and proceed to set the payments and terms into a locked-in type of mortgage. You may be able to negotiate a set term rate even before you begin construction. While this may sound like a good option be careful to not look at all the options and the market conditions before deciding. Be sure to speak with someone knowledgeable to plan this out. You can be very disappointed locking in your terms early if rates have gone down. At McCollom Mortgage, we have years of experience to guide you with the very best advice.
As a final note, be especially aware of fees or charges that apply to these projects. It is very important to shop around or engage our firm to look for these mortgages to reduce fees to a minimum. This will give you full confidence that you have made the best possible deal.