Construction Loans

Construction loans are short-term loans that provide funding for the construction of a new home, major renovations, or significant remodeling projects. These loans are typically provided to cover the cost of the construction or renovation process and are designed to be paid off through a long-term mortgage or through refinancing once the project is complete. Construction loans are different from traditional mortgages as they are specifically tailored to cover the costs of building or renovating a property.

Construction loans can be complex, and the terms and requirements may vary among lenders. It's crucial for borrowers to understand the specific terms, repayment structures, and conditions associated with construction loans before proceeding with a new construction or renovation project. Working with an experienced lender and a reputable builder can help streamline the process and ensure a successful construction project.

Ready To Take The Next Step?

Get started with Dablo Mortgage today. Solid, professional advice without obligation.

Free Consultation

Frequently Asked Questions

Mortgages are typically offered by financial institutions, such as banks and credit unions. Mortgages can also be obtained from other sources, including private lenders and government agencies.Mortgage rates vary depending on the borrower’s credit history, income level, loan-to-value ratio, type of property being purchased and other factors.

When should I refinance?

There are a lot of reasons to get a new loan. We only look at the cost of getting a lower interest rate. We don't look at how much you'll save on your payments, which can change the results because you're frequently borrowing less money. Then, we figure out how long it might take to get those costs back. In many cases, you, the borrower, won't have to pay any or very little of the costs. Even a slight change in rate can save you money. We also look at the remaining time on your mortgage. How much money you could save, and what you plan to do with the money you save from lower rates.

What are the points?

The no points, or based on paying 1 point, are references to a percentage of the total amount that can be borrowed. Since one point is equal to one percent of the loan, 1 point on a $100,000 loan would amount to $1,000. 1 point on a loan of 1.5% would be equal to $1,500.

Should I pay points to lower my interest rate?

Paying discount points to cut loan rates can be effective. Even if you anticipate staying in the property for a long time, the points may not be worth paying unless they provide a cost-effective return depending on the duration it takes to recover the costs. Points can often cut payments or increase borrower power.