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#2212263 - 04/26/19 09:07 PM Construction Perm Loan Estimate
Anonymous
Unregistered

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?

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#2212271 - 04/27/19 12:31 PM Re: Construction Perm Loan Estimate Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
That would be correct because the introductory period of the ARM loan is 6 years. 1-year construction plus 5 years before adjustment
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