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Old 03-14-2013, 07:57 AM
6 posts, read 13,339 times
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We are finishing our construction on our new home within the next month. My local community bank has financed the construction loan. Now that we are finishing with the construction phase, my banker has informed me that he can roll the loan over to an in house long term loan with this local bank. The only catch is he says there will be a 1% origination fee. Should I have to pay that origination fee? We are leaving the loan in the the same local bank. I have been told by our contractor that if we leave the loan @ the local bank we shouldn't be getting charged the 1% origination fee to convert the loan from the construction loan to permanent. Please Help. I need some Advice as to what I should be expecting.. Thanks for any and all advice.
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Old 03-14-2013, 09:17 AM
4,567 posts, read 10,454,004 times
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The contractor doesn't work at the bank. He knows nothing.

Banks change their offerings all the time. Unless you have a contract that says no second closing costs, your going to pay a second closing cost. Many construction loans have two closings, so its not uncommon. You are the one who wants the bank's money, they can make up anything they want, its up to you if you want to accept their terms. Feel free to shop it around to another bank.
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