So it's May 2015 and I am just joining this conversation with the same plans to build with plenty of cash to do it without compromising our retirement and other investments. I have already gained some new insights by reading everyone's comments here so thank you! We also have our current house almost paid off which will be used to recoup some of our costs when it sells. And like several of you, we don't want to sell and move two times so we'll wait until new construction is near completion. But something just keeps nagging me about having some kind of safeguard in case something happens along the way. We know and trust our builder, but hey, anything can happen expectantly along the way. So I Googled Beth's original headline and came across another blog that revealed something very reassuring to me. Everyone knows about construction-to-permanent loans, but how about just taking out the initial construction loan and then paying it off in full at the end with no permanent loan? The lender assumes responsibility for getting an accurate appraisal, inspections, approvals for builder draws and final title. A 12-month construction loan would involve miniscule interest costs for the peace of mind in return. And what say you? An inquiring mind wants to know!

One of the biggest problems with any scheme to pay off credit cards by using more credit is most people do NOT change their spending habits. The average consumer will take out a home equity loan to pay off outstanding balances and then only 2 or 3 years later find themselves with a home equity loan and credit cards at their max again. That doesn't solve the problem; it makes it worse. Plus there is the potential to lose you home if you fail to make payments on the home equity loan. In my humble opinion, this is not the best solution to your problem unless you and your significant other make some changes in your spending habits. Switching from one low/no interest credit card can be very damaging to your credit score. One of the components of a credit score is how long your current accounts have been open. Longer is better. New credit cards every 6 months will lower your score which means you pay higher rates or cannot qualify for those "teaser" rates. Also, be aware that the teaser rates will escalate very rapidly if you are ever late with a payment. The solution that I suggest to the personal financial management classses I teach is to stop using credit cards for any daily expenses. Save them for emergencies (a death in the family, an earthquake destroys your house, a hurricane is coming and you have to evacuate). Concentrate on paying off one card by paying extra on that card every month but continue to make the minimum payments on every card you have. When that card is paid off, apply that payment to the next card until it is paid off. If you have trouble avoiding temptation with credit cards, put them in a ziplock bag and seal it. Put that bag in another bag and fill it with water. Put both bags in the freezer and leave it there. Anytime you need a card it is available, but you have to wait to thaw it out to use it which means you have time to think about whether or not you really, really NEED what you plan to purchase with credit. While it sounds "dorky" and simplistic, it does work. Good luck

Home equity line of credit. Basically, you are putting a second mortgage on your existing home in order to buy the new one. Obviously, you need to have quite a bit of equity in the existing house to use this strategy, which is why many people in this situations get bridge loans instead. We've done it and it worked out fine. It all boils down to whether you can comfortably make all the loan payments involved. If it's really a financial stretch or if you're the type who can't help fretting about the future, then you're probably best off not doing it because you'll drive yourself crazy worrying when/if your existing house will sell.

A large part of the problem has arien frm the 'electronic recording' of note. Instead of actually shuffling paper, an electronic database is used to 'record' ownership of the notes. This was done to speed yup sale of the notes, and avoid the recording fees jurisdictions require to actually record the ownership of the note at the court house. There have been hints of problems dating back a couple years. Dutsche Bank created a shell company to securitize notes and issue bonds backed by the notes. They then wanted to save even more money and rolled the shell company into Dutsche Bank. When they then tried to foreclose on some defaulted notes, the court required them to prove they actually owned the notes. All they had was ownership of the bonds, the notes were still in the name of the dissolved shell company. It would be like you purchasing a Fannie Bond, and then claiming the right to foreclose a note 'included' in the bond. You own a bond from Fannie, NOT the underlying notes. Fannie owns the notes, and they are the one who must foreclose. The electronic recording database is a private company, set up just to make buying and selling of the notes faster and less expensive. Some courts have allowed the company status as the 'owner' of the notes, others have taken issue. For may years the whole thing was handled on paper. Each seller added a transfer of the note ownership to the paper file, and then had the new ownership recorded at the appropriate court. This 'hampered' the secondary market, so the recording database was created. At least some of the title insurance companies have had some heartburn with the lack of public record. Only the actual owner of a note can release the note (or someone they directly designate like a settlement company for sales). With ownership of the note not clearly and publicly recorded, how is anyone to judge if the release on full payment is valid? Just as with a quit claim deed, you can only convey your actual interest in a property. A quit claim for the Empire State building I might give you conveys nothing, since I have no interest in the Empire State building. In the name of faster they have managed to cause clouds on titles that may take some time to unwind, and in the meantime owners who have defaulted will escape foreclosure until the courts are satisfied with clear ownership of the notes (and not simply a bond backed by the note).