Comments on: Can you refinance a interest only construction loan prior to converting to conventional? http://www.refinance--blog.com/personal-finance/can-you-refinance-a-interest-only-construction-loan-prior-to-converting-to-conventional Refinance Information and Deals Sun, 20 May 2012 20:54:06 +0000 http://wordpress.org/?v=2.7 hourly 1 By: AllCourt http://www.refinance--blog.com/personal-finance/can-you-refinance-a-interest-only-construction-loan-prior-to-converting-to-conventional/comment-page-1#comment-5 AllCourt Fri, 19 Sep 2008 22:45:50 +0000 http://refinance--blog.com/personal-finance/can-you-refinance-a-interest-only-construction-loan-prior-to-converting-to-conventional/#comment-5 I assume when you say "converting to conventional" that you have a construction loan product that automatically converts to conventional financing when the construction phase is completed. Without reading the terms of your loan, it's hard to know. Some loans have prepayment penalties. Read your loan documents or ask the lender directly, and make sure it is in writing. I used a construction loan to purchase and rehab an investment property, where the bank would convert to conventional financing. I could pay any amount toward principal at any time, but every loan is different. I assume when you say “converting to conventional” that you have a construction loan product that automatically converts to conventional financing when the construction phase is completed. Without reading the terms of your loan, it’s hard to know. Some loans have prepayment penalties. Read your loan documents or ask the lender directly, and make sure it is in writing.

I used a construction loan to purchase and rehab an investment property, where the bank would convert to conventional financing. I could pay any amount toward principal at any time, but every loan is different.

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