Posted By: Insanity Queen
Interest only monthly payments during construction - 06/29/11 09:00 PM
If you have an ad for a construction loan that says "Interest only monthly payaments during construction period", would that not trigger some additional disclosures, like the amount of the interest and the balloon that would occur if the ad also states that the construction loans are 6-12 months? I think the 6-12 month terms disclosed on the ad would also be a trigger term that would require additional disclosures (like the APR and amount of payments/balloon). Am I wrong? It's not our advertisement - it's another bank's flyer but our construction department wants to do one just like it and doesn't know why I would have a problem with it.