With an interest-only loan, you are only responsible for paying the interest on the amount you draw from the construction loan each month.

Here’s an example.

If you draw $15,000 in January, you pay 4.99% on $15,000

If you draw an additional $25,000 in February, you pay 4.99% on $40,000 ($15K from January + $25K from February)

Refinancing your home loan can be a great option to secure a better loan for your current circumstances and future goals. It makes sense to refinance your mortgage if one of the benefits will be helpful for you:

• Secure a lower interest rate
• Reduce your mortgage term
• Switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa
• Borrow against the equity in your home

If doing any of the above would benefit you, refinancing might be the next best move.

When you purchase land, you want to ensure that it can be used for the desired purpose. That involves having certain information about the land in advance, such as the items listed below:

• Land survey to know the boundaries of the property
• Property easements so you know who has permission to enter or use your land for sewer pipes or cable wires
• Title search to see what easements are on your land
• Zoning laws to determine whether the land is zoned for residential use, commercial use, or another option
• Flood hazard risk, so you’re aware of any extreme weather risks
• Appraisal so you know the value of the land compared to similar options

Also known as a second mortgage, home equity loans work by borrowing against the value of your home’s current equity. You may calculate this yourself by subtracting the amount you owe on your mortgage from the value of your home. Home equity loans provide lump-sum funds at fixed rates, creating affordable monthly payments that are consistent and affordable.

Home equity loans rely on a loan to value ratio (LTV) to disburse funds, meaning that your credit score and home equity value should be fairly substantial to take advantage of all possible benefits. For assistance in the home equity loan pre-approval process, please speak with your local Listerhill Credit Union branch.

Home equity loans provide you with the opportunity to chase dreams to the fullest. Enjoy a vacation with the whole family, invest in a household remodeling project, or even finance an upcoming vehicle purchase with only a few clicks. If you can dream it, you can achieve it!

If you’re the type of person who takes a big-picture view when planning your financial decisions, a home equity loan may make the most sense. Since you’re borrowing a fixed amount at a fixed rate, you can plan how much you’ll pay for the loan in the long run from day one.