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Construction loans are loans that are structured differently as compared to other loans such as regular purchase money or refinance home mortgage. The primary difference lies in the way the loan amount is calculated and the way it is structured.
The construction loan comprises of the following components -
Soft costs - Consisting of architectural plans, engineering and permit fees.
Hard costs - This consists of all the actual physical costs of construction
Closing costs - This consists of the origination and lender fees, title and closing fees.
Inspection feed
Reserves - This consists of interest reserve and contingency reserve
Existing lot pay-off
Regular purchase money or refinance mortgages are based on Loan to Value Ratio while construction loans are based on LTV as well as Loan to Cost Ratio. Construction loans are a complex finance product and the way the numbers are calculated differ widely.
Other useful information
If you happen to own a swanky sports car, you need to ensure that you take specific sports car insurance from a specialist insurer.
If you are contemplating to buy a performance car insurance make sure you have the ability to pay the high insurance premium that the purchase of performance car insurance entails.
Loans that are used to procure boats or any watercraft are referred to as boat loans.
'Act only' is the basic type of car insurance that is required by the law. It is mandatory for everybody (who drives) to have the same. This applies to both men's car insurance and women's car insurance.
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