Finance
A Texas bank provides a construction-to-permanent loan. During the construction phase, interest is typically calculated on:
AThe full loan amount from day one
BOnly the amounts drawn (disbursed) to date✓ Correct
CA fixed monthly payment regardless of draw amounts
DThe projected completed value
Explanation
During the construction phase, interest is charged only on amounts disbursed (drawn) to the builder/borrower, not on the total committed amount. As more draws are made, interest charges increase until construction is complete.
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