Know Your Mortgage
You bought that great home, have a mortgage payment you're happy with but now rates are dropping, or worse yet, the payment on your adjustable rate mortgage is increasing. You need to understand the nature of the loan you have to determine what options may make sense in your situation.
When the mortgage closed, you received copies of all documents you signed, including those pertinent to the property and others pertinent to you as a purchaser/borrower. While you received a very large packet of documents these are some of the most important documents you’ll see at closing:
- HUD-1 Settlement Statement
- Truth in Lending Disclosure (TIL)
- Deed of Trust
- Promissory Note
- Deed, document that transfers property ownership (purchase only)
- Right to Cancel (refinance only)
The Consumer Financial Protection Bureau (CFPB)explains each of these items in the following document:
http://www.consumerfinance.gov/owning-a-home/resources/mortgage_closing_forms.pdf
Another handy resource to learn about your mortgage is your Monthly Statement (if you receive one!). The CFPB recently passed a ruling requiring Mortgage Servicers to expand the information they provide to Borrowers on a regular basis. A sample can be found here:
