I have a "one time closing" construction loan with a 9 month construction term that will convert into a 30 year fully amortized loan. During the 1st 9 mo, interest only is due. The 30 year term is structured as a 5/1 ARM.
Trying to complete my GFE with the thought: 1 loan = 1 disclosure. This is how the "Summary of your loan" looks so far:
Loan term: 30.75 years
Initial mo amt owed: $X interest only pmt
Can your rate rise? YES, 1st change=69mo (9mo const term + 60mo fixed period)
Can your mo amt owed rise? YES, 1st increase in 9 mo, can rise to $X p&i effective at permanent term
Is this how anyone else is disclosing? Or am I completely missing the mark here? Any help/suggestions are appreciated!
All opinions are my own.