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10 Ways Modular Buildings Will Save You Money: Part 1

By January 14, 2016March 2nd, 2016Uncategorized

There are a number of reasons why modular buildings are up to 20% less costly than conventionally built structures. In this installment we will examine the first reason behind the cost savings associated with modular buildings: Construction Financing.

Modular buildings allow for a shorter construction financing period. A shorter construction duration reduces the amount of interest paid in construction financing.

For example, if we look at financing a $1,000,000 construction project at 7% interest for 18 months for stick built construction the total financed amount will be $1,056,329.82. If we cut the financing period by 50% with quicker modular construction, the same $1,000,000 project financed over 9 months at 7% will have a total financed amount of $1,029,392.91. In this example, using modular construction to complete the project 50% faster saves $26,936.94 in construction financing costs.

construction financing comparison

If you are interested in learning more about Palomar’s modular construction cost advantages, give us a call at 1-866-312-4032 to talk to one of our modular building specialists.