Well according to the loan officer after I finish building in say 6 months then we all come back to the table and sign me in to a permanent mortgage based on whatever the current rate is. So the mortgage will no longer be adjustable if I understand her right. It'll just be whatever the rate is at that 10 seconds.(4-4.5%)

So if I'm communicating this well to you guys; My confusion is that the 10/7/5 year periods never happen since the construction takes 6 months then it gets modified in to a permanent non-adjustable mortgage.

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Posted by Hawkeye95

Member since Dec 2013

20293 posts

Posted on 5/30/14 at 12:11 pm to BeerMoney

quote:
Well according to the loan officer after I finish building in say 6 months then we all come back to the table and sign me in to a permanent mortgage based on whatever the current rate is. So the mortgage will no longer be adjustable if I understand her right. It'll just be whatever the rate is at that 10 seconds.(4-4.5%)

that doesn't sound right but I don't know about buying a new home.

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Posted by Tiger4Ever

Member since Aug 2003

36703 posts

Posted on 5/30/14 at 7:13 pm to BeerMoney

quote:
Well according to the loan officer after I finish building in say 6 months then we all come back to the table and sign me in to a permanent mortgage based on whatever the current rate is

Sounds like a shitty one-time close product since that would be your second closing...

Eta: since I'm trying to be less of a jackass, the 10/1, 7/1, and 5/1 is your permanent structure. Your construction loan is probably a 6, 9, or 12 month interest only that converts to the ARM of your choice post completion.

So, with the 10/1 you lock in the rate on the perm for 10 years, then it adjusts every year from there on....7/1 locked in for 7, then adjusts every year from then on....

This post was edited on 5/30/14 at 7:19 pm

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