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My bank gave me nine months to finish, but I am looking at twelve. The bank has no penalties for going over, they simply “discourage it.” Not that I am trying to pull a fast one or anything, but how long do you think I can get away with? Especially considering they are making money off my interest payments.
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William,
My bank gave me ten months and in two weeks, I'll be at 2 years!
I'm probably not their favorite client but I'm making the payments so they're happy!
Mike
*I havent had any trouble with extra time either, just dont ask for more money on the same loan. They are picky about that . My bankers both told me to be sure to get enough the first time. Rolling over a loan is no problem if you have the money at due time; at least so far for me.
*long as they can see progress they will work with you-it's that simple-make your payments on time...banks are not really the enemy I found out-you can actually talk to them...long as you are making paymentsthey care about helping you achieve your dream.long as you are making paymentsbanks will go to bat for youlong as you are making paymentsbanks always have your best interest in mindlong as you are making payments
*actually I have worked with a number of banks and they will work with you as long as they can see progress...
*Just out of curiosity, how much higher are the interest rates you guys are paying for construction financing compared to straight mortgages ?
*>long as you are making payments.........:-)
*My rate was 7.5 last week.lol Doug
*Mine was 4.75% last month. Why can't we get a rate like that and lock in!?Our bank gave us 10 months.We had framing issues last summer and lost 1 month.We just asked for a 1 month extension and they said it can be done, but they will be some paperwork fee's. Approx. $500They will allow 60 days but after that it sounds like they have to reprocess the loan. The credit info we gave becomes too old.
*We're at 5.5% fixed. We were given 12 months up front. This is a log home (kinda of difference financing needs) financed through Bank One and they have been great. Bank One's construction loan rate is cheaper than permenant financing. They do a one close loan, so in theory, if we finish in the alotted 12 months, we just convert right over.Paula
*I think I went down from 9% to 7% when we converted from a construction loan to a mortgage. Craig K makes a good point though - Extending a loan can cost some bucks. Don't think our extension was that expensive though. I'd push for a 12 month construction loan - You may well end up extending that time frame anyway.