^ construction loan

[barefootcontessa]

If you have gotten a construction loan, who was your lender? What was the rate and origination fee? I am not thrilled with the quote we have.

[lizrd7579]

Ditto JRo. Local bank and our rate was 6.5% during construction. I believe it went down to 6% once we did the final close (and have since refi'd, obviously). This was 4 years ago, so I'm not sure how relevant it is now.

One of the things we looked for was that there was only one closing which meant only paying closing costs once. Some banks make you do two: once when you start the construction and once when you roll it into a 30 year fixed (or whatever loan type).

[tripleshot]

We are actually closing on a construction loan Tuesday. It's a one-time close construction to permanent loan at 4.0% (30 year fixed). I'm looking at the GFE now and it says the adjusted origination charges are $3280.00 on a $231,000 loan.

We will pay interest only during construction (110 days), then they'll convert it to a 30 year fixed.

ETA: We used First Place Bank in NE Ohio.

[bunch]

We also used a local bank. Our origination fee was a standard 1 percent. I can't remember the rate during construction (maybe 6 percent?) but we locked again when construction was over (to at the time a competitive 4.625). We also only had one closing. The rate change was done during a quick meeting at the bank.

[barefootcontessa]

Thanks. It sounds like we need to keep looking. They want to do two closings, to the tune of $20K.

[tripleshot]

May 11, 2012 16:20:52 GMT -5 barefootcontessa said:

Thanks. It sounds like we need to keep looking. They want to do two closings, to the tune of $20K.

Ouch! If you're using a builder, they may have recommendations. I would definitely try to do a 1 time close though. Good luck!