Such structure loan features a comparable design because an interest-only financing having good balloon percentage at the maturity. It ensures that the newest borrower will pay interest-just payments because the design is actually improvements and will shell out the rest dominating in one fee at the end of the brand new framework. This might be a risky loan because it helps make the debtor in control having an enormous one-time fee. In this instance, brand new borrower would have to shell out settlement costs twice, that on structure financing and another for the mortgage. Continue reading →