Truth in lending.

[badmomma]

The New rules for the Truth in Lending act became effective recently. It is meant to make it easier for the buyer to know what their loan is all about.

There is a three day waiting period so that the paperwork can be reviewed before the loan process begins in earnest.

The issue seems however that it may gum up the works a bit. Causing another strain on the already strained mortgage loan system.

And if the interest rate changes even marginally before the settlement date, a new set of disclosure documents must be given to borrowers, restarting the review process.

BORROWERS can see their interest rates change from the initially quoted rate for many reasons. If their credit score was lower than they first thought, or if they are required to pay mortgage insurance on the loan because their down payment money ran low, for instance, the rate can easily rise by more than one-eighth of a point.

I never knew these things and I am sure that many others didn't either. Will it really help us we will have to wait and see.