Construction Loan Calculator Purpose:

The Construction Loan Calculator helps potential borrowers estimate the costs and payments associated with construction loans, which typically involve two phases: the construction phase and the permanent mortgage phase.

Input Fields used in Construction Loan Calculator Explained:

Project Costs used in Construction Loan Calculator:

Land Cost: The purchase price of the lot/land
Construction Cost: Total estimated cost of building the structure
Soft Costs: Additional expenses like permits, architectural fees, etc.

Loan Structure field used in Construction Loan Calculator:

Down Payment: Percentage of total project cost required upfront
Construction Interest Rate: Rate during the building phase
Permanent Interest Rate: Rate for the permanent mortgage after construction
Construction Period: Duration of the construction phase in months
Permanent Loan Term: Length of the permanent mortgage in years

Construction Specifics used in Construction Loan Calculator:

Number of Construction Draws: How many times you’ll receive portions of the loan during construction
Contingency Reserve: Additional percentage added to construction cost for unexpected expenses

Ongoing Expenses:
Property Tax Rate: Annual property tax as a percentage
Annual Insurance: Yearly insurance premium

Results Displayed:
Total Project Cost (including contingency)
Monthly Interest During Construction
Permanent Monthly Payment
Down Payment Required
Total Interest (Construction + Permanent)
Payment Breakdown Chart showing principal, interest, taxes, and insurance

The Construction Loan Calculator helps borrowers understand both the short-term costs during construction and long-term financial commitment of the permanent mortgage phase.