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

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.


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?
The opinions expressed here should not be construed to be those of my employer: