re: 30 year mortgage rates.

Stupid question but do the same rates apply for new construction loans?

I was 8 months out of college. That's the only thing I can figure. My credit score was good but I didn't have much credit.

quote:

---

sonoma8

---

quote:

---

Stupid question but do the same rates apply for new construction loans?

---

Ours was new construction. But it wasn't construction-to-perm financing. Builder package or spec in other words.

Probably refinancing in the near future. Current loan is about 5%, which we got 6 years ago. About time to get something under 4%.

Locked in at 3.625 on a 30 year loan. Close in a few weeks.

quote:

---

construction loans are a little different with the bank I work for. We do a one time close and most customers are taking the 5/1 arm at 2.875% to build the home and then once the house is completed we modify that to the current 30yr fixed rate.

---

Whats the cost to the consumer for 5/1 vs standard 12 month build product?

Whats the profit for broker vs typical 12 month construction loan?

Seems weird as mst build outs don't take 12 months, so a 5/1 is just overkill.

You must work for Whitney. That is what I did. 5/1 arm 1st, and now converting to a 30 year. I can't say I really understand. I am still doing a second closing and have some (it seems some duplicated) closing cost associated with it? In retrospect, I am not sure that this was the better route.

I was initially under the impression that it was in fact a one time closing, and I paid everything up front. I didn't realize I would be bringing several thousand dollars to convert to a 30 year.

what your bringing to closing is your title insurance and your escrows. and yes that can add up to several thousands of dollars very quickly. and yes I work for whitney.

4% is a good rate. I wouldn't worry about refinancing unless you have PMI and can get rid of it, or a 15 yr. loan at 3% would fit into your budget.