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Best option at keeping carrying costs down on lot purchase?
Posted on 8/12/20 at 3:48 pm
Posted on 8/12/20 at 3:48 pm
Hope my title is sufficient for batman.
We have found a lot (uncleared, but utilities all available, in a neighborhood) that we want to build on, but we don't want to start construction for 1 year.
Lot cost is 150,000. Assuming I can put down 25%, i'd be financing $112,500.
What suggestions/products/advice do yall have for keeping my monthly carrying costs as low as possible? Interest only products? How would that work, and what could my monthly rate be in today's environment?
We have found a lot (uncleared, but utilities all available, in a neighborhood) that we want to build on, but we don't want to start construction for 1 year.
Lot cost is 150,000. Assuming I can put down 25%, i'd be financing $112,500.
What suggestions/products/advice do yall have for keeping my monthly carrying costs as low as possible? Interest only products? How would that work, and what could my monthly rate be in today's environment?
This post was edited on 8/12/20 at 3:49 pm
4
Posted on 8/12/20 at 4:14 pm to AUjim
Tear the house down asap to keep your property taxes low. You should be able to get 4.5% or lower interest only if you have great credit.
Posted on 8/12/20 at 4:22 pm to AUjim
Make sure you pay attention to drainage before purchasing. Go out after a large rain event and see how it drains and how the adjoining property drains.
I’m not a fan but look into a balloon mortgage and how it would impact a construction loan. Don’t have much experience with this but have a few friends that do spec homes and they do this sometimes. Also had friends that got burned doing it in 07.
I’m not a fan but look into a balloon mortgage and how it would impact a construction loan. Don’t have much experience with this but have a few friends that do spec homes and they do this sometimes. Also had friends that got burned doing it in 07.
Posted on 8/12/20 at 4:50 pm to AUjim
find a bank that has a interest only option. I work for hancock bank and they offer a 24 month interest only option on lots. I don't know the rate off hand because i don't lend those products but its under 6% right now.
Posted on 8/13/20 at 8:06 am to AUjim
You need to go talk to some bankers OP. I don’t remember the name but there’s lot to construction loans where you roll the cost of the lot + home construction into a regular mortgage at completion. These will have dates in which construction will need to be completed but 1 year seems likely doable.
Posted on 8/13/20 at 8:50 am to baldona
I talked to my usual guy yesterday and they quoted me an interest only product that would cost about 450/month after 37,500 down (financing 112,500)
We could swing that, but would like lower-just not sure if lower is feasible or out there.
We could swing that, but would like lower-just not sure if lower is feasible or out there.
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