Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hello.
I have worked for the last year to get a Builder I trust and to create house plans I want. I have 25 acres to build on I own clear of debt. Have been relying on a talented lady with Chase for assistance to package a deal. Just putting the deal in motion consumed my time thus far. I have a builder contract and specs and financials all up at Chase as of today. They will now order the appraisals of the land and the house and improvements. Now I want to know any imput you would give on the financing terms. My head is about to come out of the sand and ask for more details about terms. Thus far we have discussed a one-time close with the interim being prime minus one with no fees to obtain with a 6.5 % interim for 12 months. Then I would convert or transition into the permanent loan. I am assuming the best play is to stay working with Chase because I believe her ability to pull off a $2 ml loan on a 30 yr fixed perm. is probable and will service the loan well . I just was wondering what should be a good rate for interim and or permanent to expect now and should I wait to lock in permanent later in your opinion.
Thanks
They normally have a 'margin' that is required on every loan.
It's normally 3% that they need to make in points....regardless of loan amount.
Brokers on the other hand can work with you..and you will see how much they're getting paid.
Which allows you to negotiate everything.
You can forget about 'servicing'....as EVERY lender makes you sign a document that states that they have the 'right' to sell off your loan.
Quote:
Originally Posted by Loaner
Hello.
I have worked for the last year to get a Builder I trust and to create house plans I want. I have 25 acres to build on I own clear of debt. Have been relying on a talented lady with Chase for assistance to package a deal. Just putting the deal in motion consumed my time thus far. I have a builder contract and specs and financials all up at Chase as of today. They will now order the appraisals of the land and the house and improvements. Now I want to know any imput you would give on the financing terms. My head is about to come out of the sand and ask for more details about terms. Thus far we have discussed a one-time close with the interim being prime minus one with no fees to obtain with a 6.5 % interim for 12 months. Then I would convert or transition into the permanent loan. I am assuming the best play is to stay working with Chase because I believe her ability to pull off a $2 ml loan on a 30 yr fixed perm. is probable and will service the loan well . I just was wondering what should be a good rate for interim and or permanent to expect now and should I wait to lock in permanent later in your opinion.
Thanks
I appreciate the warning... when do they charge the points you mentioned? The good faith didnt disclose anything other than some smaller fees and title policy.
or YSP....if it is with a bank...you wont know the YSP...with a broker you will
Quote:
Originally Posted by Loaner
I appreciate the warning... when do they charge the points you mentioned? The good faith didnt disclose anything other than some smaller fees and title policy.
Without getting into too many details, I've found that in "certain marketplaces" -- lenders are still vying for business. Quality loans for quality borrowers is a valuable commodity today.
You might be (more like "probably are") in that marketplace. I've had large mortgages recently, with zero points, absorbed/eaten fees, etc. and more than one lender throwing their hat in the ring. As far as the terms, that's a very case specific situation. Interest rate risk is bearable for certain people, but not for others. Good luck.
Thanks for your responses... I know this much to date. The 1 time close will have apprx. 12k of closing costs and as I said before prime minus one with no fee for it and no origination fee either. The 12 month interim interest is estimated to be about 80k and they will create an interest reserve account for that so I dont have to pay out of pocket, the same with the closing costs albeit it is handled in a different way, but nothing out of pocket. Then all the aforementioned costs roll to permanent 30yr fixed when its constructed. The permanent is what I will learn more about on Friday, tomorrow. So I assume I am going to get a going rate for the permanent when it rolls is that where I could get stuck with some hidden.. higher rate than the market averages? Any more advice would be appreciated. I dont want to get backed into a corner with this one time close.
Thanks
I just studied what ysp is and apologize that you probably already answered my question in your previous reply.
Thanks again ..... I welcome any other insights.
Thanks for your responses... I know this much to date. The 1 time close will have apprx. 12k of closing costs and as I said before prime minus one with no fee for it and no origination fee either. The 12 month interim interest is estimated to be about 80k and they will create an interest reserve account for that so I dont have to pay out of pocket, the same with the closing costs albeit it is handled in a different way, but nothing out of pocket. Then all the aforementioned costs roll to permanent 30yr fixed when its constructed. The permanent is what I will learn more about on Friday, tomorrow. So I assume I am going to get a going rate for the permanent when it rolls is that where I could get stuck with some hidden.. higher rate than the market averages? Any more advice would be appreciated. I dont want to get backed into a corner with this one time close.
Thanks
If you think there might be some "hidden" or "extra" fees, charges, etc., or you could get "stuck", higher rate, or anything of the like -- then you need to question who you are working with. You are the client! As I mentioned, a quality borrower is a valuable commodity, you are that commodity -- and hidden this or extra that is going on, or if you think you might get backed into a corner, then you are probably working with the wrong person.
On a construction perm loan on a free & clear property the fees are normally taken from the equity, something like a refi, which means they are normally not out of pocket expenses. Depending on your final rate this sounds like a good loan, as the closing costs (assuming they are not charged on the conversion) are low at just over .5%. I would be interested to find out what the final rate is, and if they are locking it in now or if it is floating. Good Luck!
Shannon
VP
South capital Lending LLC
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
