A New rule by the The Consumer Financial Protection Bureau has arrived just in time to be included on the home-buyers Thanksgiving list of Blessings.
When it goes into effect in2015, today’s ruling will result in “mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer.”
Nick-named the “Know Before You Owe” forms, the new papers will take the place of today’s federal disclosure forms. The new forms are a simpler design than the old ones.
The forms have undergone rigorous testing to enhance the consumers’ understanding of their a mortgage. The new forms also enable consumers to clearly see loan comparisons.
Here are a few points for which home-buyers can be thankful:
1. The rule additionally requires that consumers receive these forms “in advance of making key decisions, so they have time to process the deal before signing on the dotted line.”
2. Consumers will receive two new forms, at important times: When you applty for home loan, one form will be given to you. They, you will receive will receive the other one a little while before closing.
3. The forms are written in plain language, and they empower consumers to see primary pieces of information:
A. See the interest rate!
B. See your monthly payments, for certain! Know also if the payments can change, increase or otherwise effect your family budget.
C. See and understand the closing costs of the loan. The basis of the newly created forms is to make it simple for home-buyers “to compare the initial estimate to the final costs.”
Palm State Mortgage agrees that these new forms will help you realize your obligation. It is no secret that many buyers overextended their budgets in the last few years. Saddled with payments they could simply not afford, they compounded the recent financial crisis.
In our next blog, Palm State Mortgage will explore how this happened to home-buyers, and how the new rule and the new forms will prevent it from happening to you.
In Honor of the Holiday, Palm State Mortgage Company Shares Some Wise Words From American History:
“It has seemed to me fit and proper that (God’s gifts) should be solemnly, reverently, and gratefully acknowledged with one heart and one voice by the whole American people. I do, therefore, invite my fellow citizens…to set apart and observe the last Thursday of November next as a day of thanksgiving and praise to our beneficent Father who dwelleth in the heavens.”
-From President Abraham Lincoln’s Thanksgiving Proclamation of 1863
We are thankful for our friends, families and clients, at this great time of gratitude and fellowship. Please accept our best wishes for a beautiful, healthy, happy, and safe Thanksgiving Holiday.
