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#2199800 - 12/04/18 07:14 PM Prepaid Interest on Const/Perm Loan
It's not easy Offline
Member

Registered: 05/14/09
Posts: 90
Can we collect prepaid interest on a C/P loan? I'm asking because we are being told that our first payment on the one-time close needs to coincide with the billing cycle for the permanent phase which would be the 1st of the month. So if we close on a construction loan mid-month with an initial advance, can we collect prepaid interest until the 1st.

Thanks!

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TRID - TILA/RESPA Integrated Disclosures Rule
#2199830 - 12/04/18 10:39 PM Re: Prepaid Interest on Const/Perm Loan [Re: It's not easy]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 68231
Loc: Galveston, TX
How can you calculate prepaid interest on a multiple advance construction loan? Would you not just bill for accrued interest on the first of the month?
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