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#2261437 - 10/22/21 01:57 PM HELOC to Term Loan Product?
TINKerBell Offline
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TINKerBell
Joined: Nov 2006
Posts: 3,243
Tiger's Den!
Are there any other banks that offer an I/O HELOC that automatically terms out at the end of the I/O period (such as a 10 yr. P/I term)? If so, what disclosures would we need to provide this product? We are just looking at the possibility at the moment, but want to ensure that we are fully compliant with disclosures if we decide to add this product. Any help would be greatly appreciated!
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#2261451 - 10/22/21 03:32 PM Re: HELOC to Term Loan Product? TINKerBell
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
Fairly common in other areas. In Texas it is a requirement, as Texas does not allow a balloon payment on a HELOC. The early disclosure and note agreement just has a draw period and a repayment period built into it. As far as I know most all HELOC doc prep systems support this product. Just be aware that even once the HELOC converts to P&I, it is still an open-end credit and you need to service it as such, i.e. monthly open-end period statements.
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