VERSION 1
8 CONSUMER FINANCIAL PROTECTION BUREAU
TRID RULE: SEPARATE CONSTRUCTION LOAN DISCLOSURES GUIDE
Assuming $25,000 outstanding for
the entire construction phase (i.e.,
½ the commitment amount), the
monthly and total interest for the
construction phase is $218.75 and
$1,093.75, respectively, if, based
on the best information reasonably
available at the time of the
disclosure, interest will be
determined by dividing the interest
rate by 12.
Assuming $50,000 outstanding for
the entire construction phase (i.e.,
the entire commitment amount) the
monthly and total interest for the
construction phase is $437.50 and
$2,187.50, respectively, if, based on
the best information reasonably
available at the time of the
disclosure, interest will be
determined by dividing the interest
rate by 12.
Ultimately, Appendix D provides an estimated interest amount, which can then be used to
estimate the periodic payment. Note that the creditor may be required to do different or further
calculations depending on the basis on which interest is determined (e.g., daily, weekly, every
two weeks) or if the periodic payment is not interest-only.
Estimating other disclosures
Using the interest payment amount estimated with Appendix D, Appendix D and its
commentary also provides methods for how the creditor is permitted to estimate:
The APR;
The Total of Payments; and
The Amount Financed for purposes of the disclosures.
Additionally, the commentary to Appendix D provides additional details on how to complete
TRID disclosures for construction and construction-permanent loans. These disclosures
include:
The Loan Term;
The Loan Product;