I have a question in regards to the Product field on the Loan Estimate for Construction Permanent loans.

The customer has decided on a construction perm loan. Our product is interest only for the construction phase of one year, then the customer can choose between 3, 5 or 7 years fixed, then adjustable each year following. Our LEs state one year interest only, 6/1 Adjustable Rate. Shouldn't the LE state one year interest only, 5/1 adjustable rate? It seems to be misleading to the customer by disclosing this way. Additionally, wouldn't this mess up the AIR Table info?

That would be correct because the introductory period of the ARM loan is 6 years. 1-year construction plus 5 years before adjustment