Are you planning to build a log cabin/home or park model cabin/home within the next three years? If so, our Lay-a-Way Plan can mean big savings on your dream. First, the Lay-a-Way Plan locks in your kit price for up to three years. With the cost of building materials rising each year, this can mean a savings of ten percent or more on packages shipped in three years. Second, making the regular Lay-a-Way Plan payments reduces the final balance due at the time of delivery, reducing your future mortgage and saving tens of thousands of dollars in mortgage interest! Our example below shows how a log home buyer can save by using the Gastineau Lay-a-Way Plan.
Here is how it works:
Sign a standard Purchase Agreement for your Gastineau dream home/cabin or park model, choosing from any of the three types of packages. (Sorry, Back to Basic Plans are not available as a Lay-a-Way Plan purchase.) A 10% down payment and signed purchase agreement is all that is needed. The Lay-a-Way plan requires a monthly payment of 1% of the total price. When you take delivery, which can be any time during the 36 month time period, your final balance due will be your original purchase price less your 10% deposit and all your monthly payments. There are no finance charges; 100% of your monthly payments will be applied to your home/cabin package price.
To see how the Lay-a-Way Plan can help you, read this example.
Here is what you pay:
- Deluxe Package Price $75,000
- Less deposit $ 7,500
- Balance Due $67,600
- Less 36 monthly payments @ $750 per month* $27,000
- Balance due on delivery $40,500
*Based on the minimum monthly payment of 1% of the package price. You may choose to make higher payments to reduce your final balance.
Here is how you save:
Direct Savings: Package prices typically increase by 5% per year because of increasing costs of building materials. Over three years, this would be an increase of… $11,822 Subtract the interest you could earn by placing your deposit and monthly payment into a CD or Savings Account earning 3% $1,530 Direct cash savings on your package of $10,292
Over the life of a 30 year mortgage at 7% this alone would give an overall savings of… $20,412.
- Deposit $ 7,500
- Monthly Payments $27,000
- Direct cash savings $11,822
- Total amount excluded from mortgage $46,322
Over the life of a 30 year mortgage at 7% this is a total savings of $110,945!
Remember: Savings will vary with the size of your package, prevailing interest rates and the length of time you participate in the Plan. You may take delivery at any time during your Lay-a-Way Plan. Your balance due will always be your package price less your deposit and all the Lay-a-Way payments you have made.
If you must cancel for any reason, all of your monthly payments will be refunded. The initial deposit is non-refundable as explained in the Gastineau Purchase Agreement. If you cannot take delivery within 36 months, your package price will be adjusted, based on prices prevailing at the expiration of the original agreement, and a new agreement will be prepared. Under the new agreement your package price will be guaranteed for another 36 months.