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    13-16. Turn off the interest. - Electronic Edition

    13-16. Turn off the interest. - Electronic Edition
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     In the beginning, your construction loan is a very small amount each month. Since you pay the interest only on paid-for items, you get off easy for a while. As more stages of construction are completed, the picture changes until your payment is about the size of a full house payment at the end. Occupy the new home as soon as possible, and get the previous dwelling off your back financially. To do this, you mill need a certificate of occupancy in most jurisdictions. Find out what it takes to get to closing of your permanent (mortgage) financing. Often you can pay for remaining non-required items, like carpet or painting out of pocket or do them yourself while the interest monster is shut off.

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