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#2245711 - 11/19/20 08:02 PM Construction-Can go as high as for Monthly P&I
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For a construction only, 11 month interest only, balloon payment in 12 month, where there is no set draw schedule except that draws are based on percentage of completion.

The LE/CD is based on the assumption that 1/2 of the loan amount is drawn at origination. Based on the above terms, in theory the the monthly principal & interest could max out in month 2 if all the funds were drawn. Correct?

Just trying to make sure it is correct to disclose "Can go as high as $x,xxx in month 2".

Thanks in advance.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2245712 - 11/19/20 08:10 PM Re: Construction-Can go as high as for Monthly P&I Likes to Comply
rlcarey Offline
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rlcarey
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It can max out in month one or even day one for that matter. We use Month 1.
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#2245713 - 11/19/20 08:38 PM Re: Construction-Can go as high as for Monthly P&I Likes to Comply
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Thanks, I'll have to find out if the loan system is inserting month 2 or if the processor is keying it in.
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#2245799 - 11/23/20 10:04 PM Re: Construction-Can go as high as for Monthly P&I Likes to Comply
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Because our system determines the interest by the number of days in the month, the LE I was looking at disclosed the 2nd month because March has 31 days and so the interest payment would be more than in the 1st month - February with 28/29 days.
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#2245820 - 11/24/20 04:19 PM Re: Construction-Can go as high as for Monthly P&I Likes to Comply
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I'd like to add another question to this thread...

For Monthly Principal & Interest > Can go as high as $X,XXX in month 2 - can month be used or must mo. be used?

I couldn't find anything to address this specifically, except that for the disclosure in this area it references the way to disclose the Product and uses the designation "mo."
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#2245832 - 11/24/20 06:54 PM Re: Construction-Can go as high as for Monthly P&I Likes to Comply
rlcarey Offline
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It would be "mo."

Pretty unusual for TRID disclosures to not ignore months with a different number of days.
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#2245881 - 11/25/20 03:47 PM Re: Construction-Can go as high as for Monthly P&I Likes to Comply
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Thanks for the help!
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