Real Estate Fraud

17 Mortgage Terms Defined

Posted: June 13, 2014 at 5:47 pm   /   by   /   comments (1)

This article by Michael Estrin clarifying mortgage types is a great resource for anybody looking to buy a home. Educating yourself on loan options is the best way to protect against unfortunate financial difficulties and foreclosures in the future.

If you’ve ever shopped for a mortgage, you’ve probably been overwhelmed by an alphabet soup of acronyms seemingly designed to confuse the borrower at every turn.

While the lingo may seem complex, the definitions aren’t all that daunting. Here are the basics.

GFE & HUD-1

A good faith estimate, or GFE, is a document that lenders are required to provide prospective borrowers detailing the estimated costs of the mortgage loan. The costs listed on the GFE typically include the lender’s origination fee, points (if any), escrow or attorney’s closing fees, title insurance, appraisal fee, and various other taxes and expenses. However, the exact list will vary by state, and borrowers should remember that the actual cost of the loan can change.

When the mortgage officially closes, lenders are required to state the actual costs of the loan on a HUD-1 form. (HUD is an acronym for the Department of Housing and Urban Development.) The HUD-1 should track with the GFE, but it can also include other costs, such as a broker’s commission, which might not have been included in the original estimate.

Read the full story from msn.com >

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  • February 21, 2016 at 3:58 am Sudheesh

    ……I personally repecst Casey for the way he is handling his situation. I even sent him $5.00(US) a couple of weeks ago. But unfortunately his blogging antics will be used against him in court, both Federal and State! Not to mention the one where she gets half of nothing.

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