Change Construction Loan to Mortgage

Now is the time to decide if you want to pull more money out of construction loan before switching to Mortgage. I was well under my budget that I signed with the bank so we pulled out some money for some future projects. Once you switch to fixed mortgage the only way to get money is to refinance. This cost you money so if you plan on needing more money in future pull it out now. Hopefully the bank you have chosen is easy to work with. Remember to make sure they are including property tax in your mortgage unless you want to pay a lump sum every year. Hold the bank responsible for the interest rate they quoted you when building. We had a contract that if we build for under a certain number we would be locked in at 4 % interest rate when switched to mortgage. To me I was happy with this number and the bank upheld their part of the bargain. Don’t forget to have your insurance add the new house to for your homeowners policy. Its time to enjoy your house and have a beer. Congratulations