The commitment letter indicates the permanent mortgage company will pay off the interim construction loan when the home is finished. The interim construction loan can be made to the builder or the home-owner. If the loan is made to the home-owner, the interest that is paid is income tax deductible just like mortgage interest. 0009 Installment Loans Installment loans are all-purpose loans used to finance such items as motor vehicles, boats, land or major appliances. Installment loans are also used for home improvements, debt consolidation and personal expenses.
Installment loans are one of the most popular ways to borrow.
They provide you with a structured loan to be paid back in a specified time. Typically, new vehicle loans will run for a maximum repayment time up to five years. Older model vehicle loans and signature loans are financed for shorter periods of time. Lenders match maturity dates with the expected economic life of the asset being financed. Under a fixed rate loan contract, you know exactly how much you will be paying each month, so payments can be budgeted in advance.