Anonymous wrote:How do the payments work while its being constructed? Do they go up the more money thats dispensed to the builder?

Correct. You can think of it as a HELOC that grows money is drafted from the account to pay for expenses related to building the house. It's typically an interest only loan, that then converts to a traditional loan (Fixed, ARM, etc...) once the home is built. Also keep in mind the construction loan will be used to pay off the lot loan, and the interest rate of the construction loan can be different than your current lot loan and potential permanent loan.