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: 

 http://www.makinghomeaffordable.gov/learn-more/mortgage-statement/Documents/example_mortgage_statement.pdf
 

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Testimonials

I want to say a huge thank you.  It feels a million times better knowing where we will be living, that we don't have to move, and I can actually afford to live here.  My life is no longer on hold, and we have been able to make plans for the first time in ages. There is no more black cloud of uncertainty hanging over my head always, waiting for the bank to dictate so much of my life. Thank you, thank you, thank you!
C. K.
There are no words to say how much you did for us and how much you helped us, you basically saved us.
B. A.
Thank you for taking the time to talk to me and put my heart at rest! I look forward to working with you to stay in our home.  I have an appointment with a housing counselor your referred us to and I will give you an update once that occurs.  Again, it meant so very much to me that you took the time to give me hope.
A. F.