Following the build, you will have a 15- or 30-year mortgage at a fixed rate and pay either one or two sets of closing costs to get there, depending on your loan type. As you can see, despite their complexity, construction real estate loans do provide opportunity and potential for many prospective homebuyers.

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A mortgage rate is the rate of interest rate you pay on money you either borrow to buy a home, or a rate you pay on a second mortgage, or home equity loan when you borrow money against your home. You can get either a fixed mortgage rate or a variable mortgage rate.

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