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Message
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Subject:
Re: Best way to finance Home Construction
Author:
Casey shull
Posted:
6/22/1999
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Most mortgage companies will treat your new home construction as a re-finance IF you already own the lot. The advantage to a re-finance? You may not have to pay PMI on your mortgage, providing you pass the 80/20 loan to value ratio. Unfortunately you will have 2 closings, but if you calculate the cost of PMI for a min. of one year (required by Govt.), or until you can re-finance you should be much better off. Mortgage companies do not like you to avoid PMI,
because they lose revenue. You may have to search and interview alot of companies until you find one that is honest (good luck) but there are a few honest companies available.
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