Construction Loan Comparison Tool
Compare multiple construction loan offers side-by-side
Loan Options
| Field | |||
|---|---|---|---|
| Loan Amount | $ | $ | $ |
| Interest Rate | % | % | % |
| Construction Period | mo | mo | mo |
| Permanent Term | yr | yr | yr |
| Down Payment | $ | $ | $ |
| Closing Costs | $ | $ | $ |
| Points Paid | pts | pts | pts |
Comparison Results
| Metric | Lender A | Lender B | Lender C |
|---|---|---|---|
| Construction Interest | $15,000 | $14,500 | $15,500 |
| Monthly Payment | $2,902 | $2,828 | $2,977 |
| Total Upfront Costs | $105,000 | $90,000 | $64,500 |
| Total Lifetime Cost | $1,149,626 | $1,107,943 | $1,136,109 |
| Effective APR | 5.48% | 5.37% | 5.70% |
| LTV Ratio | 80.0% | 83.3% | 87.0% |
Note: Green highlighted values indicate the best option for each metric. Consider all factors including your cash flow needs, long-term goals, and risk tolerance when choosing a loan.
Understanding the Comparison
- •Monthly Payment: The regular payment during the permanent loan phase. Lower is better for cash flow.
- •Total Lifetime Cost: All payments over the life of the loan including down payment and fees. Lower total cost saves money long-term.
- •Effective APR: True cost of the loan including fees and points. Better for comparing loans with different fee structures.
- •Upfront Costs: Total cash needed at closing including down payment, closing costs, and points.
Decision Factors
- •Cash Flow Priority: Choose the loan with the lowest monthly payment if preserving cash flow is important.
- •Long-term Savings: Select the option with the lowest total lifetime cost if you plan to keep the property.
- •Limited Cash: Consider loans with lower upfront costs if you have limited funds for down payment and closing.
- •Rate Environment: In rising rate environments, paying points for a lower rate may be worthwhile.