What are the different types of building loans?
The building loan is a personal financing for the construction or renovation of the house. The debtor may apply for financial assistance when completing the household project or applying for a considerable amount of money to build a house on empty assets. These loans are usually intended as short -term loans that occur only during the construction phase. Different types of building loans are available, but they can vary very differently depending on the construction project.
One of the most common types of building loans is disposable close loans. The one -time is closely when the financial institution lends the debtor a specified amount of money to pay off during the construction of houses. For example, if the estimated period of completion for the construction of the house is one year, the debtor generally makes 12 monthly payments to obtain the loan paid until the project is completed.
Single close loans are short -term loans that have a specified interest rate. If Construction takes longer than the Loan AgreementLužník has to pay sanctions. Once the house is built, the creditor can transfer a loan to a long -term mortgage to finance the actual payment of the house. The building loan is generally considered to be one paid year of a mortgage.
Another type of building loan is a note loan. This loan is similar to a one -time close loan in that it can be transferred to a mortgage after completing the project. The credit adjustment loan generally has a payment rate that starts small and increases the price in construction. Once the project is completed, the debtor can choose a new mortgage rate that is locked or variable. The locked payment rate remains the same, although the value of the house decreases, while the variable rate is adjustable to the current market value.
Double loan in nearby construction begins with a salary, which pays construction costs until the house is completed. Once the construction is completed, the debtor canRefinance a new mortgage payments plan rather than continue the same rates. Double credit loans in narrow construction tend to be used for more expensive construction projects, as construction rates can be higher than long -term mortgage installments.
Some financial institutions offer building loans based on a specific project type. The debtor can apply for a short -term produced housing loan. This type of loan can cover the delivery costs for parts of the house from the factory and the cost of putting it together on a specific site. There are other specialized building loans for the construction of houses and mobile home.