Here's something to think about if you're thinking of building a log home.
I asked my friend Greg Ebersole, the Residential Mortgage Banker for Susquehanna Bank his thoughts about mortgage rates for 2013 and here's what he said:
We do expect rates will increase as we go throughout the year. I think most clients realize these low rates will end at some point and most importantly when inflation increases it’s a double edge sword, rates increase and costs go up.
Current rates are 3.75% on a 30 year mortgage and total construction costs are $400,000 with client putting 20% down = loan of $320,000
Payment would be $1,482/month (Principal & interest only)
Fast forward 9 month, rates go to 4.75% (a realistic possibility) and costs have gone up 5%. Now the project is $420,000, client now has to put an additional $4,000 down to lend at 80% = Loan of $336,000
Payment would be $1,753/month (Principal & interest only) which is $271/month or $97,650 over the life of the loan plus the additional $4,000 down. The delay in doing it now cost them $100,000.
OPEN HOUSE EXTRAVAGANZA APRIL 6
Let us help you get started on your dream log home during our Open House Extravaganza at 2 PM featuring a log home seminar about how to design your Appalachian Log Structure's home for less money. Call to reserve your seat today. Also consult with Angela Andrews from Old Dominion Realty about your land needs and pre-qualify for your loan from Summit Community Bank as well. Take a tour of our 16 x 20 Sportsman Cabin and 2 car garage and workshop on site. You'll want to attend this Open House Event. Call Scott Ridder at 540-433-1873 or email at firstname.lastname@example.org for more information.