Business and Personal Finance Dictionary

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• CONSTRUCTION LOAN
  
  An interim loan that is used to pay for the building of a home as it is constructed. Your lender will make payments to your builder as work on your home progresses. This is generally a short-term loan, but sometimes when the home is completed, the lender will convert the loan to a traditional mortgage. If the lender is not willing to convert the loan, you will either need to pay the loan in full or refinance the loan with another lender.
  
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