Lender terming out single pay note on primary residence located on 100 acres. The rate is rising. He doesn't want to replace the mortgage, (it's a run to the courthouse state) and just wants to do a Change in Terms. I told him he had to generate a TIL, reflecting the fee, the new APR and the payment schedule. Does this sound reasonable, or should he refinance the loan, (and maybe modify the mortgage instead)?

Thanks,

Deb

I'd do a new note with the TIL disclosures likely utilizing same deed. We don't modify major change in terms.

Thanks Joker, I.

(I can't help but say to you, "I live, I ride, I am". Sorry. :))

I agree with you and if I were the lender, (with the anility of a CO), I'd make it clean and neat with a new loan. However, neat and clean is not a lender objective and I do understand the lenders concern, not to mention, he is trying to save his borrower money. So, I guess my ultimate question is, assuming the TIL is accurate, is this legal?

Thanks again!

Whether you contract remains legal (enforceable under state law) is a matter for your attorney to determine. Regardless of the extent of modifications, Section 226.20(a) imposes a redisclosure requirement ONLY if you add a variable rate feature or cancel and replace the note. Changing from one fixed rate to another fixed rate is not a variable rate feature.