Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

4 Ways New Mortgage Rules Can Save You a Ton of Money

October 29, 2015 at 12:00 AM

Whether you are buying a home or refinancing an existing mortgage, new federally required disclosure documents make it easy-yes, I said easy-to be a super smart mortgage shopper.

Within three days of applying for a mortgage a lender is now required to provide you with the 3-page Loan Estimate. Then once you get within three days of your mortgage closing the lender must cough up a 5-page Closing Disclosure doc. What’s remarkable, is that these documents are actually written in a clear consumer-friendly way. They are so not the muddled, confusing docs of old. And that’s fantastic news.

Some of the highlights of the Know Before You Owe disclosures are the result of the Consumer Financial Protection Bureau standing up for you:

Comparison shopping is now easier than ever. The uniform Loan Estimate spells out the specific terms of the loan, and on page 2 provides a detailed line-item account of the closing costs you will pay to get this loan. When you are shopping for the best mortgage deal, apply at a few lenders (the only charge, if any, should be to run your credit reports) and then do side-by-side comparisons of the terms and fees laid out in the uniform Loan Estimates you receive.

You can more easily make sure a lender isn’t sneaking in any last minute surprise fees. Once you decide which lender you will go with, hold onto your Loan Estimate. When you are close to your closing date, the lender must provide the Closing Disclosure form. You can carefully compare the fees you were told you would pay (on the Loan Estimate) with the fees the lender is now telling you it is going to charge you. They should match up.

Help thinking about the big picture (Part 1). Both documents include—on page 1—a clear breakdown of what your projected monthly housing costs will be, including what you will likely owe for property tax and insurance. Focus on that section and honestly ask yourself if you can afford to make that financial commitment, and also be able to keep on track with all your other financial goals.

More help thinking about the big picture (Part 2). Both disclosure docs include sections that give you a sense of your all-in obligation for years to come. Be sure to check out the Total Interest Percentage (TIP) that shows how much your total interest will be relative to the amount you have borrowed. Talk about an eye opener. Your TIP of course depends on the interest rate of your loan, but even at today’s low rates a TIP can add another 60% or more to the cost of your mortgage. All of this is great information, right at your fingertips, that will help you carefully consider whether this deal is in fact right for you.

Tag Cloud

reduce monthly paymentdear suzedon't spend loan no longer than 36monthsshorter payback periodsave student loan repayment estimatorlow-cost index mutual fundwomen longer life spancalculate dependents annual income needseight month living expense 20% equityFICO credit score credit card mortgageFHA loan feesis it kind?is it true? college graduateHDHP's are good for youmoney vowsoverspend on giftsidentity theftGoodbyehealthy teethclosing disclosuredon't cover cosmetic dentistryretirment savingstitle insurance10 year repayment plan long term careburn outFICO Scorerent vs buyroth iraSandy Hook Promise20% down paymentpermanent life insuranceFinancial Awareness Video FestivalPersonal Financebetter loan dealsdebit cardHDHP dangerous money seasonlong-term care premiumsAARP Social security calculatorcredit reportinitial tax break percentage men widowed 75-84increase emergency savingsis it necessary?protect loved ones iffy incomeswitch to spouse coveragesocial security never insolventbuy home you can affordStock InvestmentsFinal GoodbyeAuto Savings no splurge Vital DocumentsMoney-SavingSuze is my biggest mentorhome buying seasonGay CouplesHDHP's are not badbad decisionslower overall drug costbuying a carcnbc alarm clockcontribution file taxes quicklyhigh premiumscompare provider pricingkids schedule paymentsMoney Marketannual cost of living adjustmentPay Off Debt Before Retirementtelevision hostdepreciating asset gift up to 14,000taxesadult childrencredit utilization rateconfident of solutionautomatic withdraw to savings financial argumentsLong Term Care shoppingdental discount planretirement accountsemergency fund raising interest ratescar leasingcredit cardcharges on credit cardLTCborrow each year, capitalization is going to pile up 20% down payment avoid fees740 credit scorefile asaptoo expensive schoolhealthy gumsSuze changed my lifedon't buy wantspaying for collegeMarlo Thomas3% debt transferred Foreclosureunder 18 financial giftgift grandchild IRA contributionteach your child good money habits4 Must Have Documents COLAearn more on savingsswitch to roth 401(k)Influentialsheartachefederal student loan deferment Mass MutualHigh Credit ScoregraduationChanging Livesletter to suzecollege studentcredit unionidentity fraudconfidentHSA tax savings2015 financial roadmapGiftsnear historic lowsmarriage financial responsibilitypercentage of women widowed 75-84Fixed Rate Mortgagewives should be involved in retirementdon't do five year car loanfraudulent returnHolidayno private loansraise your deductibleloan big picture doctor no longer in networkUniversity of Illinoisstretch out haircut appointmentshome related tax break bonus mobile appmeet monthly suitablewomen live longerrefundBeauty15 year mortgagehousing marketinterest capitalizationresponsible with moneyreplace permanent life insurance with termFRAAmericans don't use all paid vacation timereduce withholdingRevocable Trustfocus on needsraising mortgage rates small changes sidelinedstaycationpremiumlow down paymentverify wellness screening and programshome buying budgetunexpected expenseanticipated salaryescrowbuying car 2016back door Roth IRAFinancial CliffbudgetLTC shoppingfinancial concernproperty taxDeath Benefitcommunity collegeno late fee pay credit debt ASAPThe Suze Orman Show50 over 50new carno fee transferCombo Insurance ProductsFinancial Awarenessaccelerate dental work3 savings buckets Fundscreate new truthStudent Debt CrisisHDHP/HSArequired disclosureStudent Loancost of capitalization calculatoremployer offered life insuranceFinancial Solutions For Youalways use all paid time offget health insuranceraise insurance deductibleshort term goal home budget after tax cost3 step financial road mapdon't use allowance as bribeprotect and provide for minor child raise deductiblesinsurance yearly reviewCredit Card Interest Rateovercome financial fearsbe good example2016 adjust withholdingFinancial Educatorbill paying prioritieslong-term care retirementadvice for college graduatesSwap Older Annuities or Life Insurance allowanceMost Influential Celebrities Listyours, mine & oursHoliday Shoppingpay off debtmortgage disclosurechildren's bookengaged in financesmoney-aware childstay positiveSuze Orman's Money Warslower mortgage interestsavings pleasurecan you afford itSchool of Social WorkTeachcontribute household expenses manage student loansCD'smental healthpeace of mindmonthly dental insurance premiumlow credit scoreInvest for savings growthUrbana-Champaigntake actionnot gender specific ritual scheduleAshley Springercredit management2017 TaxesRetirement IncomeEric Dodge Communication Skills Loveeliminate credit card debtmarriage inequalityETF'sbetter termsadd teenteach importance of helping otherswaive home inspection bidVeterinary Schooldoctors in network!00% tuition paidlowest cost fund optioncompare monthly expensesbe kind to yourselfco-sign increased auto insurance premiumGay RightsLTCi ASAPNew american Dream US Tax Code40% toward financial goaldon't derail retirement savingsteensMoneypush yourself to save more for retirementjanuary billsGiftmax benefit coveredsocial workget the most out of social security face your financial fear2016 adjust estimated taxpay more than minimumreduce interest rateHeartno tax on withdrawlssame-sex marriagesocial securitysecured cardHDHP'salternative FICO scorepresident Obamaone credit cardfamily save at least $100 monthlyquick closingprescription tierFiscal Responsibilitylet them have 50% controlHoliday Seasonknow before you oweshop online guaranteed level term policyOne Wallet At A Timesame sex marriage band end FloridaEmergency Savingsgrandchild summer job IRA contributionloved ones dependent on incomestudent loan repayment planStaffords this year have a fixed 6.8% interest ratehome insurancevalue moneystandard ratehigh credit score discountprovider of financial supporthealthy retirement blood pressurepublic service loan forgiveness programSelectQuote.comspeak new goalbest interest of investorpublic service career student loan repayment lower interest rateInfluential CelebritycommitfiduciaryCollege of Veterinary Medicinesecure creditConventional loan PMIplanis it necessarySelfishNewtownBill and Pennywould you decline a bonusbreakdown projected monthly housing costget over life insurance phobiaARMInflation BenefitFree Debt Eliminatorrepay student loansonly offered while employed term life insurancedon't charge a pennyPBS SpecialOverspendingretain separate credit cardstax ID theftFinancial Gift CliffJose Rodriguezapproved medical 100% tax-freepreexisting condition not coveredage appropriate chorecar loanfocus on new truth FinancialAARPCivil Rightsfinancing car no private loanspring summer Exhibitionhome buying mistakesorigination feesCredit Card Rate Increaseinterest on student loansmortgagedo you need life insurancebuy homePrime Rate Rise 2015overspend on nights outcut monthly cable billcomparison shoppingNew York Lifetax refund fraudlive below your meansemotional stakeshome ownershipdeath benefit 20 to 25 times annual incomevalentines daystudentreal estate marketnegotiate points with bank or sellerCory BookerPost-Divorcerequire chore in exchange for allowanceRoth 401(k)dangerous retirement planallowance taskFederal Stafford loanpay interest while in schoolprotect your familyno negativitySpendingLifestyleverify retirement plan with HR or plan sponsorleave a legacymortgage interest tax deductionspecial saving accountGracechildren under 18Wall Streetlong term goallousy investmentsocial security not going brokebalance transfer professional advisorultimate compounding gifthigh down paymentEasy Life Insurance responsiblecostly legal Save Us Moneythree year car loanhigh FICO scoregrandparent IRA contribution 2015 record year car salesloan necessityAlarm Clockinsurance mistakeBaby Boomersstudent loan repaymentclosing costs 2% of loanreal estate mistakesWarner Bros Television Groupbest interest ratessetup automatic savings withdrawautomatic paymentemployer funding HSAWillMortgage Credit Availability Indexfour steps to retirement savings itemized deductionincrease retirement contribution ratecouple financeslow mileage discountmax employer matched 401(k) contributionrolloverlower ratebecome member FICO at least 720incentives for health care wellness screeningtraditional vs roth 401(k)Suze approved6 month waiting periodlearn good financial choicespurely financial standpointLegal Guardianterm insuranceno life insurance financially irresponsible15-year refinance dealWashingtonwomen outlive menFederal ReserveFinancial Power of AttorneyLong Term Care premiumshealthy aging bad retirement planningpaid in fulldon't blow tax refundpositivederailed planpay down student loan debtCNBCHigh FICO Score = Better RateForbesdebt freeopen enrollment review write new goalDurable Power of Attorney for Health Careschool 19 years cash flow problemAdequate Auto and Home Insurancelower premiumstudent loan debtexercise reguarlyfull retirement agemortgage brokerpoint cost offset by savingsbest loan deal 10% donate to charitydental savings plan8 month safety netstrained relationshipSatisfyinghome loan credit score below 740 consider roth 401(k)gay marriage ban end Florida affordable premiumSuze Ormanearn allowancecut monthly cellular billPhyllis Shelton expert long-term caresave moneyteens and moneySuze Orman Scholarshipfinancial independenceback-to-school budgetSandy Hook Elementary Schoolretirement planno sneaking in feesenjoy saving get credit card3 bucket approachuniversal college accesssummer job match income better loan ratesworst financial mistakeForbes Top 10maintain standard of livingFinancial Advicemultiple lendersmake saving a pleasureworkaholicdream schoolCiti Simplicity Card refinancedebtat worst still pay 75% benefitMust Have Documentsstandard deduction life insuranceStudent Debtno retirement funds for down paymentrising home pricesCommencementaffordabilitymonthly benefit 401(k) Contributionsno interestno waiting periodjuggle multiple financial goalssavingsInteresthealthy youdon't ignore open enrollmentRetirement SavingsMinor Children women long term careLong Term Care Insurance commissionsAccuQuote.compaid vacationignore 6 month grace period pay high rate off firstno apologyhighest possible benefitonly refinance if it paysmax employee matchBankholiday spendingdo not pay allowance for good behaviorcommunity bankpay down car loanloan is giftYoung Adult life insurance name trust as beneficiaryage appropriate goals30 year mortgage Federal Funds RateSuze Orman spouse Kathy Travisadjust allocations not enough life insuranceTelepicturesschedule vacationoverspend on dining outAmy LacyetFederal PLUS loanBankruptcybig results powerful8 Rulescar buying mistakesincrease retirement savingsnon conventional routefinancial aidreferrals higher monthly paymentinsurance401Kfinancial fearsautomate student loan paymentsfinancial goal phrasepay 100% cash8 month emergency fundkeep a schedulebuy down dental insurance Motherborrowing plan 20 year level term University of Floridaavoid burn outhigher insurance deductibleclosing feesphysical healthkid borrow firstdon't defer interest paymentsdeath benefit needs for familyHow To Build Creditemergency fund savingsPrime Rate Increasesuccessstore credit cardsRichFinancial Systemunsubsidized Stafford loanone annual feeEmployer Matched Contributioncostly insurance mistakeIRA contribution gifted moneybe true to yourselfhigh deductible health care planCredit scoreprotect dependent 20 to 25 times annual incomeCPI-Whealthy retirement weightRevocable Living Trustzero rate transfer dealsARM Cautiondon't extend mortgage gift not loan


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel