Understanding Your Loan

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If you don't understand all aspects of your loan you might be agreeing to things that you just cannot afford. The way they write up loans can be difficult for a genius to understand. For that reason, new rules have gone into effect on January 1st. that are to simplify things for people so that they understand what they are signing.

They have a new form that they call a "Good Faith Estimate" that is to be given to all applicants. The purpose of it is to make it easier for applicants to compare true costs of loans from different lenders.


CnnMoney

"The main purpose is to give consumers the tools to be able to compare apples to apples," said Robert Grosser of Luxury Mortgage, a New Jersey-based direct lender. "All lenders must use a specific form and disclose fees in the same spots on the same forms."

cnnmoney

I really like the idea of this because it breaks down all of the costs and fees and can give you a better idea of what they are wanting to charge you.