Dan (or anyone else)....this brings up a question on this issue i'm still fuzzy on, so i'd appreciate your guidance. Let's say a rent home is purchased using say a 5 year balloon with a loan amount of say $50,000. Exempt from Reg. Z. After 59 months, with the balloon note getting ready to mature, the borrower comes in to refinance, and says, for the sake of argument, that they want to renew (refinance) this loan, but they'd like $2,000 extra to fix the roof on their own primary residence. I can see this two ways. One: the balloon was coming up anyway and the bank was going to refinance this loan regardless. As such, the "purpose" of the loan, in reality, was to refinance this business purpose loan. Two: the "consumer" purpose of wanting the extra $2,000 throws the entire refinance into a consumer purpose loan. Which is correct?
_________________________
I'm fixin' to fix that.