[j.arnold]

I apologize for any confusion that number 3 in my question may have caused. I referred to a “new note” when there is never a new note in our construction to permanent process.

To answer your question, “Does your original note provide information about the rate and payments due after the construction phase is completed?” – The original note (the only note) stipulates interest rate and payment information for the permanent phase which commences roughly 12 months from origination. The borrower also executes a Construction Loan Agreement to bridge the construction period. Upon completion of construction, the borrower may execute a modification of the original Promissory Note, if there has been a change in the loan amount or interest rate.

[Author]

Posts