LICENSED GC · TXINSURED1-YR WORKMANSHIP WARRANTYESTIMATE IN 48 HRS(972) 440-0738INFO@ZENCOREHOMES.COMLICENSED GC · TXINSURED1-YR WORKMANSHIP WARRANTYESTIMATE IN 48 HRS(972) 440-0738INFO@ZENCOREHOMES.COMLICENSED GC · TXINSURED1-YR WORKMANSHIP WARRANTYESTIMATE IN 48 HRS(972) 440-0738INFO@ZENCOREHOMES.COMLICENSED GC · TXINSURED1-YR WORKMANSHIP WARRANTYESTIMATE IN 48 HRS(972) 440-0738INFO@ZENCOREHOMES.COM
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Free Tool · Construction Loan

Estimate your
construction loan payments.

See interest-only payments stage by stage as your construction loan balance grows with each draw, plus total interest paid before it converts to a permanent mortgage.

Assumes draws land evenly across the build (2.0 months per stage) and interest-only payments on the outstanding balance at each stage.

Estimating full project cost too? Try the New Construction Cost Estimator.

Results

Payments by draw stage.

Total interest during construction
$16,800
Average monthly payment
$1,680
StageBalance drawnEst. monthly payment
Draw 1$80,000$560/mo
Draw 2$160,000$1,120/mo
Draw 3$240,000$1,680/mo
Draw 4$320,000$2,240/mo
Draw 5$400,000$2,800/mo

Simplified estimate only, not a loan quote. Assumes interest-only payments and evenly spaced draws - actual draw schedules, timing, and rates are set by your lender and vary by project. Interest before the loan converts to a permanent mortgage. Default rate reflects the 2026 weighted-average construction loan rate (~8.4%, roughly SOFR plus a 2.5-4% lender spread); market rates for one-time-close construction loans currently run about 6.5-9.25%.

Common questions
How do construction loan payments work during the build?

Most construction loans are interest-only during the build and are paid out in draws as work is completed. Your payment grows at each draw stage because you only pay interest on the portion of the loan that has actually been disbursed, not the full amount up front.

What happens to the loan after construction finishes?

Most construction loans convert to a permanent mortgage once the home is complete, often called a construction-to-permanent loan. At that point payments typically shift from interest-only to standard principal-and-interest.

How many draw stages does a typical construction loan have?

It varies by lender and project size, but five to six draw stages tied to major milestones (foundation, framing, mechanicals, drywall, finishes, completion) is common for a custom home build.

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