SSB COVID-19 Update: Click Here Frequently for Important Customer Information.
Monthly payments on a construction loan are interest-only based on the amount advanced on the loan. In the beginning, your monthly payments will be less but will steadily increase as construction progresses and more money is drawn off the loan. You can calculate an approximate interest-only payment in the following way: Multiply the dollar amount advanced on the loan by the interest rate expressed as a decimal, and then divide that amount by 12. This is not an official calculation, it will not equal your exact payment and is not legally binding, it is simply a way for you to estimate what your construction loan payments might look like as your home construction progresses.