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#2225245 - 11/07/19 03:47 PM Interest Rate Basis
RVFlyboy Offline
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RVFlyboy
Joined: Oct 2000
Posts: 5,991
Soaring over Georgia
I'm taking an informal survey regarding interest rate accrual basis for consumer construction lending. If your bank does loans for consumer construction purposes, do you use an interest rate basis of 365/365, 360/360, 365/360, or something else (if something else, please indicate what that is). I appreciate all the feedback I can get on this. Thanks.
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#2225250 - 11/07/19 03:55 PM Re: Interest Rate Basis RVFlyboy
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
We use 365/365.
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#2225276 - 11/07/19 06:46 PM Re: Interest Rate Basis Skittles
RR Sarah Online
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RR Sarah
Joined: Mar 2004
Posts: 2,505
Up North
365/365
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#2225307 - 11/07/19 10:25 PM Re: Interest Rate Basis RVFlyboy
crcmnot Offline
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Joined: Sep 2016
Posts: 351
365/365

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#2225310 - 11/07/19 11:00 PM Re: Interest Rate Basis RVFlyboy
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,221
Galveston, TX
Hard to apply 360/360 on a multiple advance loan - I am not even sure how you would do it. 365/360 would be possible, but could cause usury problems and would be disallowed in some States on consumer transactions. I don't think I have actually ever seen anything except 365/365.
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