Cape Gazette
http://capegazette.villagesoup.com/p/899316

Good Faith Estimates

By Bill Cullin | Feb 10, 2013
Photo by: Bill Cullin


Several years ago the U.S. Congress tried to protect consumers from a few unscrupulous lenders by requiring all lenders to calculate and disclose the annual percentage rate (APR) you pay on your mortgage loan. But most homebuyers will learn more by directing their attention to the Good Faith Estimate of Settlement Costs (GFE). Although Congress meant well, in practice the APR is not helpful and may be confusing.

If you are looking for a good way to understand your costs of borrowing and/or to compare one lender's costs to another, the GFE is your best bet. Get your lender(s) to provide a written GFE before you commit your mortgage business. When reviewing a GFE, keep in mind that the lender actually controls only a certain portion of the disclosed costs. Other parties typically control costs of appraisal, settlement, title insurance, recording fees and taxes, survey, and the "prepaid" expenses of homeowner's insurance, mortgage insurance, real estate taxes, etc. Review these origination fees, discount points, etc. and you will have the ability to understand the full costs of your proposed mortgage loan.

Bill Cullin

Call or Text (302) 841-7147

Email: Bill.Cullin@lnf.com

Visit My Websites

www.BeachDelaware.com

www.DelawareBeachRE.com

Client Recommendations

More Client Recommendations

Comments (0)
If you wish to comment, please login.