Free Calculator
Estimate your construction loan payment before you build. Enter your project cost, down payment, and rates to see the interest-only payment during the build, the construction-phase interest, and your permanent mortgage payment after the loan converts.
Estimate only. Construction funds release in stages ("draws"), so you pay interest only on what has been disbursed — the average build payment is roughly half the full-draw amount. Rates, terms, and draw schedules vary by lender.
A construction loan releases money in stages as the home is built, and you pay interest only on the funds drawn so far. Early in the build little is drawn, so payments are small; they rise as construction progresses. Over the whole build, your average payment is roughly half the full-draw interest-only payment. When the build is complete, the loan is paid off from a sale or refinanced into permanent financing, which is the "permanent payment" shown here.
Learn more on our construction loan program page.
A construction loan doesn't work like a normal mortgage. Funds are released in draws as the build hits milestones — foundation, framing, finish — and you pay interest only on the amount drawn so far, not the full loan. That keeps payments low during construction. When the home is complete, the loan converts to (or is refinanced into) a permanent mortgage.
Our construction loans are for investment properties, and we do not offer owner-occupied construction loans. This calculator estimates both your interest-only construction payment and your permanent payment so you can budget the whole project. Call (949) 379-5320 to structure your build.
Using this calculator’s default rates: at a 7.5% construction rate, interest-only on the full $300,000 is about $1,875 a month, and the average while funds are still being drawn is about half that. Once the home is finished and the loan converts to a 30-year mortgage at 6.7%, principal and interest is about $1,936 a month (before taxes and insurance). Already own the lot? Enter its equity above — many lenders count it toward your down payment. To see what you can be approved for, check the construction loan requirements.
No. During the build you pay interest only on the funds drawn to date, so early payments are small and grow as more of the loan is disbursed. The full principal-and-interest payment starts once the loan converts to permanent financing.
During construction you pay interest only on the funds drawn so far: drawn balance × annual rate ÷ 12. Because funds release in stages, your average payment over the build is roughly half the full-draw interest-only payment. After completion the loan converts to a normal principal-and-interest mortgage.
It equals the amount drawn times the annual construction rate divided by 12. This calculator shows both the full-draw interest-only payment and the lower average payment during the build, since you only pay on what has been disbursed.
Our construction loans typically require 20% to 30% down, with up to about 75% to 80% of loan-to-cost or as-completed value (whichever is lower). Terms vary by lender. Enter your percentage to see the resulting loan amount and payments.
Yes. It estimates your interest-only payment during the build and your fully-amortizing principal-and-interest payment once the build is complete and the loan is paid off or refinanced into permanent financing.
At a 7.5% construction rate, interest-only on the full $300,000 is about $1,875 a month; because funds are drawn in stages, the average during the build is closer to half that. After conversion to a 30-year mortgage at 6.7%, principal and interest is about $1,936 a month. Enter your own rates above.
Often, yes. Many lenders count equity in a lot you already own toward your down payment, which can reduce or eliminate the cash you bring. Enter it in the land equity field to see the cash needed.
Lenders size the loan from your total project cost and the home’s appraised as-completed value, then check your credit, income and debts like any mortgage. With 10–20% down, the loan is roughly 80–90% of project cost; we confirm against live lender terms.
We shop construction lenders for investment-property builds. We do not offer owner-occupied construction loans. Free quote, no credit pull to start.