Bst way to finance a pole building?

[buckeye4life]

Admiral bank is one that seems to be on the financing page of most of the large barn builders websites. It is an FHA title 1 loan which does not require an appraisel. Admiral bank has a few different loan packages that can get you up to $40,000 which can be financed up to 20 years if you like. It is something to check into if you are not having much luck.

 

[Arc weld]

I'm in Canada so don't have access to Admiral bank. If I go with the mortgage option is it better to go with a interest rate for a 2 year term at 2.75% or a 5 year fixed at 3.29% or 5 year at 2.70% variable? I thought banks were supposed to help you but I guess not in this case.

 

[smstonypoint]

I'm in Canada so don't have access to Admiral bank. If I go with the mortgage option is it better to go with a interest rate for a 2 year term at 2.75% or a 5 year fixed at 3.29% or 5 year at 2.70% variable? I thought banks were supposed to help you but I guess not in this case.

What's going to happen to interest rates over the next five years?

I don't know, but I wouldn't risk a variable rate myself.

IMO, the choice between the two- versus five-year terms depends on personal preferences, investment alternatives, etc. In other words, there isn't a one solution fits all.

Steve

 

[bigtiller]

I was offered an adjustable rate mortgage (A.R.M.) on my first go around with the bank in 1974 and passed it up. I'm glad I did too, as interest rates went into the high teens by the early 80's. So stay away from them. I decided it was best for me to take the longest duration loan offered and then I could pay it off early. And if the future didn't go in my favor, I could make just one payment a month rather than two.

 

[Arc weld]

I'd have to see if there's a penalty for paying it off early. They said they would do it over 10 years with a 2 year term at 2.75% originally or 4% with a line of credit. I've also read where some people say to take advantage of the lower interest variable rate and even it goes up a little you still saved money from when it was at the lower rate. Now I have to get all the details from the building and they will do an appraisal of the land with the building...before the building is put up to see if I will be approved. Before I pay $400 for the appraisal I need to pay $100 to apply for a development permit. It's no sense paying for an appraisal if the development permit isn't approved. It's also no sense paying to apply for a development permit if I can't get financing. It's just a lot of stupidity for not a lot of money in the overall scheme of things.Once I get the development permit I need to pay $600 for a building permit. Like was mentioned earlier, I'm not trying to borrow $500,000.

 

[newbury]

I'm in Canada so don't have access to Admiral bank. If I go with the mortgage option is it better to go with a interest rate for a 2 year term at 2.75% or a 5 year fixed at 3.29% or 5 year at 2.70% variable? I thought banks were supposed to help you but I guess not in this case.

About all the banks can do with small borrowers like us is to make sure they squeeze every nickel they can out of us. If it was me I'd go with the 5/3.29 and try and pay it off in the 5 years.

I was offered an adjustable rate mortgage (A.R.M.) on my first go around with the bank in 1974 and passed it up. I'm glad I did too, as interest rates went into the high teens by the early 80's. So stay away from them. I decided it was best for me to take the longest duration loan offered and then I could pay it off early. And if the future didn't go in my favor, I could make just one payment a month rather than two.

In 1984 we got a 30/1 adjustable set at prime for about 10% intro with a 2% cap on upward adjustments. When I asked if there was a cap on the lower adjustments they just laughed at me. Within 12 years we rode it down to about 6% and bailed for a fixed at about the same.

I'd have to see if there's a penalty for paying it off early. They said they would do it over 10 years with a 2 year term at 2.75% originally or 4% with a line of credit. I've also read where some people say to take advantage of the lower interest variable rate and even it goes up a little you still saved money from when it was at the lower rate. Now I have to get all the details from the building and they will do an appraisal of the land with the building...before the building is put up to see if I will be approved. Before I pay $400 for the appraisal I need to pay $100 to apply for a development permit. It's no sense paying for an appraisal if the development permit isn't approved. It's also no sense paying to apply for a development permit if I can't get financing. It's just a lot of stupidity for not a lot of money in the overall scheme of things.Once I get the development permit I need to pay $600 for a building permit. Like was mentioned earlier, I'm not trying to borrow $500,000.

From your original post your looking to finance $32K, about the price of a car, but have to pay all the fixed costs (permit. title search, etc.) of a house. To bad you can't refi your house for an extra $32K.

 

[NewfieDan]

The bank I deal with has a variable rate mortgage, but it can be locked in at any time. We can get a 5yr variable rate mortgage, but if the interest rates start to go up in 2yrs we can lock it in before it goes any higher. This was at CIBC, but I'm sure that Scotia and RBC have something similar. Don't know if your credit union offers the same thing.

It may be worth it to shop around.

Is the development permit because of the size of the building? Or is it something within your specific municipality? The couple of garages I put up did not require a development permit. Only the building permit. Or could it be based on terminology? Because you call it a shop they may think it will be a business you will be operating. Especially at the size you want. If you were to call it something else, like an equipment/RV storage shed, for example it might be exempt from the development permit.

I would do a search of the municipal by laws to find out the details. Many have them posted online, but can be tricky to find. This may help you find a loophole to get around the development permit.