We closed on the house yesterday, transferring the construction loan to a regular 30 year fixed rate mortgage. One of the only bits of luck we've ever had in real-estate is that the rates are still at historical lows. Our rate is 4.25%. The closing itself was a bit of a surprise since we were told that Chase (who we thought would hold the mortgage) balked at the last moment at the appraisal. They had some question about the comps used in the appraisal. As I mentioned before, the entire system is set up for the suburban market. It is virtually impossible to find comparable properties within the distance limits set by Fannie-Mae rules and so rural properties often need an exception to the rules.
The local bank we were working with decided to hold the mortgage themselves at the same rate Chase had promised. This was a huge advantage of working with a local bank. A mortgage broker would not have been able to solve the problem like the bank did and we would have been scrambling to restructure the loan and would have certainly accrued at least another month of interest on the construction loan. They know the local market and had the flexibility to solve the problem for us themselves.
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