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#2233170 - 03/17/20 09:53 PM HELOC: Draw & Repmt Periods with diff Indexes
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,200
California
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.

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Lending Compliance
#2233183 - 03/18/20 11:37 AM Re: HELOC: Draw & Repmt Periods with diff Indexes Tarhe
rlcarey Offline
10K Club
rlcarey
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.
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