Changes Proposed For Good Faith Estimate

HUD has proposed a comprehensive overhaul of the process of applying for a mortgage. And the agency predicts that simplifying the Good Faith Estimate to help borrowers better understand the terms of their loan could save home buyers $670 on every mortgage loan on average, or $1.2 billion a year. HUD’s new four-page Good Faith Estimate includes a summary of loan terms, interest rate and monthly payment. More importantly, it explains whether the interest rate and principal balance can increase, by how much, and if there is a penalty if the borrower pays off the loan early. Lenders would be required to provide this estimate before borrowers file a loan application, thereby allowing borrowers to compare rates and fees more easily.

Click here to enter the Tampa Realtors MLS (updated daily)
Register to receive an email every morning of today's new listings
Visit my website or contact me by email