Most people do not have the cash to build their own home but rely on home building loans for financing their project. Like everything else in a do-it-yourself home building project, the more you understand about home mortgages and construction loans the better equipped you are in decision making. Basic understanding of financing and the variables involved, along with mortgage and debt reduction strategies, will help you most effectively achieve your goals.
Some things to consider in exploring home building loans are the mortgage and construction loan rates and the ease of moving from a construction loan to permanent loan. Interest rates tend to rise and fall with the stock market and it is helpful to watch the trends during your dreaming and planning phases. It is also helpful to use a construction loan calculator to help you determine how much home you can afford to build.
Another area of consideration is debt management. Much of the current problem in the real estate market is associated with having unmanageable debt load. We are very sensitive to this issue, personally striving for and moving toward debt free living.