Take the current principle and multiply it by the interest rate, then you'll divide it by 12. That will give you the current payment for that draw period. Remember to increase your principle at every draw period (depending on how many draw periods you have). For example:
250,000 x 6.25% = 15,625 / 12 = 1,302.083 <--monthly I/O
Once you have received your CO, then it will convert to a fully amortized payment schedule for the remaining loan term (unless you set it up for a fixed I/O payment for a certain amount if time).
Most construction loans have a higher interest rate, and there for you might want to entertain the idea of refinancing into a lower rate (depending on the current level of interest rate).
Hope this helps, contact me directly if you have any other questions.
· 1 decade ago