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Started By
Message
Swapping from a construction loan to a permanent loan.
Posted on 7/26/14 at 7:28 pm
Posted on 7/26/14 at 7:28 pm
I'm a couple months out from completion on my new house. I currently have a construction loan.
While talking to my lender about converting it to a permanent loan, I asked what the fees would be on the new loan.
I was quoted a little over $8000 dollars.
I'm thinking that is way too high. Am I wrong?
Thanks
While talking to my lender about converting it to a permanent loan, I asked what the fees would be on the new loan.
I was quoted a little over $8000 dollars.
I'm thinking that is way too high. Am I wrong?
Thanks
3
Posted on 7/26/14 at 8:28 pm to GeauxElliott
You didn't check this before you started construction?
Posted on 7/26/14 at 8:30 pm to GeauxElliott
How large is your construction loan?
Either way, if the 8k is all fee, then yes it does sound excessive.
However, if that is for all settlement charges, including the 1st years insurance and setting up escrows for taxes and insurance it may not be so excessive, especially if your taxes are going to be high.
Either way, if the 8k is all fee, then yes it does sound excessive.
However, if that is for all settlement charges, including the 1st years insurance and setting up escrows for taxes and insurance it may not be so excessive, especially if your taxes are going to be high.
Posted on 7/26/14 at 9:31 pm to wickowick
quote:
You didn't check this before you started construction?
I paid about that when I got the construction loan.
I'm putting down about 37% of a $300,000 loan. My lot is paid for.
My plans appraised at $505,000
I have excellent credit..
I'm not required to have PMI and I only have to pay taxes on the lot for this year.
Just seems high to me.
This post was edited on 7/26/14 at 9:34 pm
Posted on 7/26/14 at 10:09 pm to GeauxElliott
Seems way high. What's the banks origination fee? Iberia bank has none btw. The other cost like survey, appraisal, and recording fees can likely be used from your construction loan.
Posted on 7/27/14 at 9:08 am to Firemedic87
quote:
What's the banks origination fee?
I don't remember.. I was talking on the phone. She gave me a ballpark figure. Said when we get close to locking in a rate, I'd get the truth in lending paper.
I'm thinking that they should be able to use the other things from the construction loan like you said.
I'll be shopping the loan for sure.
Posted on 7/28/14 at 7:29 am to GeauxElliott
It doesn't sound that far off to me. You have to escrow for taxes and ins. For a 500k house that is probably 5k right there. Then the 1% most everyone charges is 2K. 1K for the closing attorney, title work, title ins. I would not be surprised for over 7K.
Posted on 7/28/14 at 7:50 am to Libertariantiger
I did a one time closing for construction and paid 7718.20 including escrow fwiw
Posted on 7/28/14 at 9:22 am to aaronb023
I have a construction loan right now with Whitney bank and it is only $600 bucks for me to convert to permanent loan. My total loan after down payment will be about 450k.
Posted on 7/28/14 at 10:51 am to wickowick
quote:This.
You didn't check this before you started construction?
Otherwise, if you're still a couple of months out, shop competitors for the loan.
Posted on 7/28/14 at 11:28 am to GeauxElliott
Sounds like origination fee and title fees to me. I built a similar home to you and faced the same scenarios. For that reason I went with a one time close loan since it was about half the fees and the rates were similar and in most cases better. You probably should've done a little more research up front on the whole process but too late now. You could shop for lower fees with another bank at this stage I think.(?)
Posted on 7/28/14 at 9:29 pm to toots-N-scoots
Whitney does a one time close then a small fee to switch it to a fixed rate. It's a great deal and will save thousands. Only downside is you have to have great credit, down payment, and I believe they will not lend for self contracting. But if you can check the three boxes, easily the best deal.
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