Construction to Permanent Loan Calculator
Estimate your payments during both the construction phase and the permanent mortgage phase. This calculator helps you plan your finances for building your dream home.
Loan Summary
Construction Phase Details
Permanent Mortgage Details
🏗️ Construction to Permanent Loan Calculator: A Smart Tool for Building Your Dream Home
If you’re planning to build your dream home from the ground up, navigating the world of financing can be overwhelming. One of the most efficient ways to manage both construction and long-term mortgage is through a construction-to-permanent loan. But how much will it cost you? That’s where a construction to permanent loan calculator becomes an essential tool in your financial toolkit.
🔍 What is a Construction-to-Permanent Loan?
A construction-to-permanent loan is a type of loan that covers the cost of building a home and then converts into a permanent mortgage once construction is complete. Instead of applying for two separate loans — one for construction and one for your mortgage — this single-loan solution streamlines the process and can save you time, money, and stress.
Key Features:
One-time closing to avoid multiple fees
Funds released in stages (known as draws) during construction
Converts to a fixed or adjustable-rate mortgage once the build is finished
🧮 Why Use a Construction to Permanent Loan Calculator?
Financing new construction is different from buying an existing home. Costs vary widely based on location, design, labor, materials, and timeline. A loan calculator helps you estimate:
Your monthly payments during construction and after conversion
Total loan costs over the term
Interest-only payments during construction
Required down payment
Amortization after construction ends
Benefits of Using the Calculator:
🧠 Informed decisions about budget and loan terms
💡 Comparing scenarios with different interest rates, loan durations, or down payments
🔄 Understanding payment changes from interest-only to fully amortized mortgage
🏦 How It Works
A typical construction to permanent loan calculator will require the following inputs:
| Input | Description |
|---|---|
| Construction Loan Amount | Estimated cost to build your home |
| Construction Period (months) | Time required to complete the build |
| Construction Interest Rate | Interest-only rate during the build |
| Permanent Loan Interest Rate | Rate applied once the mortgage starts |
| Loan Term | Length of the permanent mortgage (e.g., 15 or 30 years) |
| Down Payment | Your upfront equity in the project |
Example Output:
Total monthly interest-only payments during construction
Estimated monthly mortgage after the loan converts
Total interest paid over the life of the loan
💡 Pro Tips Before You Use the Calculator
Get quotes from builders and lenders for accurate cost inputs
Account for soft costs like permits, design fees, and inspections
Check if your lender allows interest rate lock-in during construction
Understand lender requirements — not all banks offer these loans
🛠️ Build Your Dream Without Financial Guesswork
A construction-to-permanent loan calculator helps demystify the complex transition from builder payments to mortgage payments. Whether you’re a first-time home builder or a seasoned property investor, this tool can give you clarity and confidence before breaking ground