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#1531948 - 04/06/11 01:47 PM Vacant land
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
Loan to purchase 89 acres to be used for hunting. Since Reg Z is purpose driven I don't think we need a TIL and RESPA does not apply either. Am I correct?

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Lending Compliance
#1531955 - 04/06/11 01:56 PM Re: Vacant land Patricia
raitchjay Offline
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Joined: Oct 2009
Posts: 8,568
OK
You DO need a TIL with a consumer purpose loan such as this. RESPA doesn't apply to land onlies if no dwelling exists or is to be placed there with the proceeds of the loan.
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#1531967 - 04/06/11 02:07 PM Re: Vacant land raitchjay
Patricia Offline
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Posts: 327
Kansas
Thanks.

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#1531994 - 04/06/11 02:35 PM Re: Vacant land Patricia
Patricia Offline
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Posts: 327
Kansas
Any advice on how I would calculate the APR on this loan?

5 payments due once every year for 5 years then 15 payments due once every year for 15 years. For APR WIN would I use the payment frequency, multiples of a month?

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#1532012 - 04/06/11 02:48 PM Re: Vacant land Patricia
RR Joker Offline
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The Swamp
Based on what you have stated, it sounds like this will be a variable rate of some sort? Or, is it IO for 5 years, then P&I for 15?
Last edited by RR Suzy; 04/06/11 03:03 PM. Reason: typo
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#1532025 - 04/06/11 03:00 PM Re: Vacant land RR Joker
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
Its P&I for 20 years. (5+15)

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#1532029 - 04/06/11 03:02 PM Re: Vacant land Patricia
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Why is there two payment streams? Is this not a straight amortization loan or is it an adjustable rate loan? Regardless you would choose multiple months on the APRWIN calculator.
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#1532087 - 04/06/11 03:57 PM Re: Vacant land rlcarey
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
The rate adjusts every 5 years. Thanks.

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