Thread Options
#2233170 - 03/17/20 09:53 PM HELOC: Draw & Repmt Periods with diff Indexes
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,200
Our HELOCs have historically been interest only with a balloon. We are now implementing a 10-year draw with a 15-year repayment period product. The question has come up - can the index and floor rate be different between the draw period (Prime) and the repayment period (US Treasury)? We plan to issue one set of docs - so both the draw period and repayment period would be fully disclosed.

Return to Top
Lending Compliance
#2233183 - 03/18/20 11:37 AM Re: HELOC: Draw & Repmt Periods with diff Indexes Tarhe
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 77,571
Galveston, TX
You are only limited by your system and the early disclosures and the note/disclosure/agreement it can produce. There is no requirement to use the same index during the draw and repayment period.
The opinions expressed here should not be construed to be those of my employer:

Return to Top

Moderator:  Andy_Z