Construction To Permanent Loan

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I have always dreamt of having my own house, which is build by me. I am ready to take a mortgage. I have been suggested by my cousin to take a construction to permanent mortgage loan. I want to know what is permanent loan is and are their any benefits of permanent to construction loans.

Guest 0.10 Dollars($)

Hi Tony,

Permanent Mortgage is a long-term mortgage usually for ten years or more. It covers costs like development costs, construction loans, financing expenses, etc. It is also known as an end loan or permanent financing.

Thanks,
Jill

jerry · Posted: Thu Dec 08, 2005 2:44 am Post subject: RE:

Hi,

You must have got a fair idea about permanent loans from the above post.

There are benefits of construction to permanent loan.

Cost effective: It is more cost effective as there is only one set of closing and one point originating fee.
Conversion to permanent financing: Your construction loan will automatically get converted into permanent loan and therefore you can concentrate more on furnishing and decoration of your new house.

Thanks,
Jerry

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