Building a home means spending a lot of time paying attention to the details, from blueprints to paint and everything in between. Luckily, choosing the loan that will finance your new home isn’t as complicated. Altabank’s experienced lenders will guide you through the financial side of the building process. We help keep your contractors moving with simple, fast, free draws so that you can get into your dream home on schedule.
Altabank’s consumer construction loans offer some of the most competitive rates available. You can save even more with a waived origination fee on your mortgage loan, a saved value of up to 1% of your mortgage loan, when you bundle your long-term financing with your construction loan.*
Reduced rates on residential construction loan + more when you bundle
3.99% interest-rate†, owner occupied, 1-to-4-family residential construction loans
(11.315% or 9.943% estimated APR‡, depending on term, and with MyRate Checking® account opening. See highlights below.)
Potentially save thousands with no long-term mortgage origination fee, a saved value of up to 1% of your mortgage loan, when you get both your construction and mortgage loan from Altabank*
Low, fixed rate for a 6-month or a 9-month loan term,‡ § which is a substantial savings off typical construction rates
1.50% or 1.75% origination fee on the construction loan (1.50% for 6-month term or 1.75% for 9-month term) ||
An interest reserve will be set up to make the monthly interest payments during the term; the monthly interest payment will increase as the balance increases
A balloon payment will be due at the end of the 6-month or 9-month term
Multiple draws without additional fees
|Terms of Construction loan||Origination Fee for Mortgage Loan||Origination Fee for Construction Loan||Construction Loan Interest Rate||APR* for Construction Loan|
|With MyRate Checking®||None||1.50% for 6 months
1.75% for 9 months
|3.99%||11.315% for 6 months
9.943% for 9 months
|Without MyRate Checking®||None||1.50% for 6 months
1.75% for 9 months
|4.49%||11.854% for 6 months
10.493% for 9 months
* To be eligible for the mortgage loan origination fee waiver, the mortgage must satisfy and replace the construction loan on the same property and to the same borrower, and the construction loan must be originated on or before 6/30/2020. Only valid in Utah, Salt Lake, Davis, Weber, Tooele, Box Elder, Cache, Franklin, Washington, and Wasatch counties. An origination fee will still be assessed on the construction loan of 1.50% or 1.75%.
†The 3.99% rate is contingent on the borrower opening a MyRate Checking® account with Altabank prior to construction loan closing; the rate without a MyRate Checking® account is 4.49%.
‡Annual Percentage Rate (APR). These are estimated APRs based on a $510,400 construction loan at 3.99% with Altabank’s standard construction loan fees and either a 6- or 9-month term. The standard construction fees are: 1.50% (6 months) or 1.75% (9 months) origination, $750 (6 months) or $1,125 (9 months) inspection, $150 appraisal review, $15 flood determination, $5 credit report (per borrower), $250 document preparation, title insurance (varies), recording (varies), and appraisal (varies). Payment example: Assuming that a loan with standard fees and a balance of $510,400 was 50% disbursed for either a 6- or 9-month term, the monthly interest payments are estimated to be either $973.19 (without MyRate Checking) or $864.81 (with MyRate Checking), and the balloon payment is estimated to be $510,400. These payment amounts do not include property taxes and hazard insurance premiums—a payment with those included would be greater. Subject to credit approval. Other fee considerations may be necessary for loans exceeding $510,400. Inquire for details.
§An additional 2-month extension with a 0.25% extension fee may be available if necessary and subject to approval.
||The 1.50% or 1.75% construction loan origination fee applies regardless of whether the mortgage loan comes from Altabank. The mortgage must satisfy and replace the construction loan on the same property and to the same borrower, and the construction loan must be originated on or before 06/30/2020. Only valid in Box Elder, Cache, Davis, Franklin, Salt Lake, Tooele, Utah, Wasatch, Washington, and Weber counties.