Construction Loans - GREAT Interest Rates!

We may never see interest rates like this!

Something to consider if you’re building a new home in west Michigan is that banks are offering construction loans at some of the lowest interest rates we have seen in a long time (2.8%-3.5%). This is a big deal for you and your project for numerous reasons. Some of the advantages are that you’re going to save a ton of money on interest over the lifespan of your loan and also be able to take advantage of lower mortgage payment. These desirable interest rates can make your investment more affordable for you and your family.

It worth talking to your builder about interest rates and who they partner with for construction loan financing. Making contact with a lender is key to understanding the financing process from start to completion. Ask your builder about financing, so you have a solid understanding in the early stages of your build.

Types of Construction Loans

Each bank will have its own financing process and terms. Your builder can make introductions to various bank representatives to get you started. Typically these loans are issued to buyers at “interest-only” during the duration of your home build. At the end of the build, your loan will close and transition into a traditional home loan, such as a 30 year fixed-rate mortgage.

Our message to you!

We are arguably in one of the best times ever to build a new home as far as interest rates. Take advantage of these extraordinary times while you think about making one of the largest investments of your lifetime.

While we could write for pages about the details of a construction loan lending/loan types, your best step forward is to talk with your local west Michigan builder and who they work with for construction loan lending. Once you’re introduced to a local bank in your area, they will quickly bring you up to speed as to what programs will be available to you and how their specific construction loan lending works.