What are my financing options?

In today’s housing market, it’s a great time to consider buying or building a new home. While we’ve seen interest rates increase slightly in the past year, rates are still at historic lows, which makes building or buying a new home more affordable.

Traditionally, building a home would mean two separate loans for the consumer –one for the construction phase of the homebuilding project and another for when the project is finished, or
what we call “permanent financing.”

Today, we’re seeing rising popularity of construction loans called “construction-to-permanent financing,” also known as “all-in-one” or “one-time-close” loans.
These types of loans have become popular due to the convenience for the consumer having only one application, one set of closing costs and one single closing.

A huge factor when considering construction-to-permanent financing is that it can protect you from rising interest rates. The construction phase often lasts six months or longer. Without construction-to-permanent financing, the consumer is at risk for interest rate fluctuation during this time. For example, longer term treasuries increased a full 1 percent from May 2013 to today’s current rates. This correlates to roughly the same increase in mortgage rates. This increase can add thousands of dollars to a home loan.

Luana Savings Bank helps customers lock in great long-term interest rates right up front during the construction phase. We work with our customers to estimate the time period for construction, and when it’s completed, monthly payments begin. This allows consumers to eliminate the risk of rising interest rates during the construction phase.

Not all lenders offer these types of construction loans. However, Luana Savings Bank specializes in this type of lending, as we see the great benefit for our customers.

Luana Savings Bank also specializes in home mortgages for those who are in the market to buy a home, rather than building. Our No-Cost Mortgage Special has become very popular for both purchases and refinances. Again, not all lenders offer this type of lending. This special limited-time offer allows our customers to lock in a competitive rate at no cost.

Eliminating closing cost fees protects the consumer from being overcharged.

Luana Savings Bank also stresses the importance of quick loan approval and local loan decisions. We’re unique because we approve and service loans locally. We strive to build close relationships with our customers beyond numbers, which leads to a much more fulfilling experience for our customers as we work to meet their needs.

We welcome you to visit with our real estate experts at Luana Savings Bank to see if our construction-to-permanent financing or No-Cost Mortgage Special fit your needs.