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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