Must the loan be amortized, or can the borrower make a balloon payment at the end of the loan term?
The loan must be amortized in such a way that allows the borrower to repay the loan in the given term. FCUs must structure the payments so that the borrower is paying a portion of the principle and interest in equal or near-equal installments on a periodic basis over the course of the loan. While NCUA is not prescribing specific payment schedules (such as monthly or bi-weekly), FCUs should offer payment schedules that allow borrowers to easily repay the loan within the given term. FinCEN. FinCEN was a busy beaver recently.
Related Questions
- If a borrower sells his or her current residence during the construction term and wishes to pay-down their construction loan (principal reduction), how will Construction Loan One treat this?
- How can I make a payment on my Federal Perkins, Health Profession Student Loan or University Long Term Loan?
- How Do You Calculate A Payment With An Interest Only Balloon Loan?
