Interest Rates On Construction Loans Fixed-Rate Loan Option during loan term: You may convert all or a portion of your outstanding heloc variable-rate balance to a Fixed-Rate Loan Option, resulting in fixed monthly payments at a fixed interest rate. The minimum outstanding balance that can be converted into a Fixed-Rate Loan Option is $5,000 from an existing HELOC account.Buying a new construction home can involve lots of exciting choices and unique opportunities. If you have your eye on a new construction home or a home that’s nearly complete, contact us today about a home loan for new construction homes.
Rates for the loans usually range from 1.5% to 3%, depending on the interest-rate environment, and are locked in for 10 years. That’s about 100 basis points to 300 basis points cheaper than.
You can expect construction loan rates to be higher than conventional loans as a whole, but other factors play a role. Learn more here.