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Disclosing Terms on Mixed Rate Loan

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Question: 
I have the following loan example: Construction/Permanent for primary residence. If the loan is approved with an 18 mo construction variable rate AND a Fixed rate(Undetermined) permanent rate for 7 yr/ 25 yr amortization. With the "new" guidelines how does the Early Truth In Lending calculate for the payment schedules in the TIL box. The first 18 mos are Interest Only and I have no way of knowing the interest rate during the permanent phase. Which term (Construction or permanent)am I disclosing?
Answer: 

How can you be contracting for the permanent loan without a set interest rate. I think you need to consult legal counsel on the validity of your contracts.

First published on BankersOnline.com 4/4/11

First published on 04/04/2011

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