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

couple financesFinancialhealthy retirement blood pressurecredit cardConventional loan PMIgraduationno sneaking in feesholiday spendingbest interest ratesretirement accountsLTCi ASAPlower interest rateHDHP/HSAoverspend on giftsone credit cardPersonal Financecredit utilization rateFundsteach your child good money habitsAARP8 month safety netHolidayhigher monthly paymentMust Have Documentscollege studentStock Investmentsuniversal college accessSuze Orman Scholarshipbuy home you can affordbreakdown projected monthly housing costRoth 401(k)write new goalSelfishhigh down paymentdon't use allowance as bribehome related tax break bonus loan big picture preexisting condition not coveredfile asapstudent loan repaymentJose RodriguezHSA tax savingsGifthealthy youhome loan credit score below 740 emergency fund low-cost index mutual fundDurable Power of Attorney for Health Careraise deductibleslong term careCollege of Veterinary Medicine20% down payment avoid feesbill paying prioritiessame-sex marriagePost-Divorcelower premiumDeath BenefitMoney Markettax ID theftescrowcreate new truthanticipated salarycnbc alarm clockcommunity college2016 adjust estimated taxdoctors in networkMarlo ThomasrefinanceEasy Life Insurance depreciating asset Student Debtbalance transfer affordabilitycan you afford itInflation Benefitdeath benefit 20 to 25 times annual income3 step financial road mapBankpaying for collegeMotheryours, mine & oursInvest for savings growthoverspend on nights outchildren's bookallowance taskdon't charge a pennyorigination feesCombo Insurance ProductsVeterinary SchoolLTC shoppingSatisfyingunsubsidized Stafford loanMinor Children mortgage interest tax deductionRetirement Savingsiffy incomeleave a legacybe true to yourselfLong Term Care premiumsopen enrollment review no negativityHDHP Alarm Clockis it necessary?retain separate credit cards19 years cash flow problemMass MutualFinancial Power of Attorneythree year car loanresponsibleGay Rightshealthy aging max employer matched 401(k) contributionloan is giftback door Roth IRAworst financial mistakepremiumStaffords this year have a fixed 6.8% interest ratemortgagewomen outlive menbecome member strained relationshipMoney-Savingretirement planhome buying mistakesno retirement funds for down paymentsmall changes near historic lowsnegotiate points with bank or sellerARMUniversity of Floridaraising mortgage rates teens and moneyThe Suze Orman Showsecure credit15 year mortgageHigh Credit Scoresocial workFederal Funds Ratefile taxes quickly3 savings buckets get credit card2016 adjust withholdingadvice for college graduatesexercise reguarlyspring summer pay interest while in schoolfinancial aidHoliday Seasonkids schedule paymentswomen longer life span8 month emergency fundwomen long term carepublic service career student loan repayment teach importance of helping othersultimate compounding giftroth iraheartacheEmergency SavingsCD'sreplace permanent life insurance with termconfidentmonthly benefit affordable premiumearn more on savingslet them have 50% control2015 financial roadmapFinancial Cliffvalue moneyhigh deductible health care plansave co-sign increase emergency savingsbe good examplehigher insurance deductibleFRAfamily save at least $100 monthlyNew York Lifeis it kind?home insurancebudgetadd teenAuto Savings marriage financial responsibilityborrow each year, capitalization is going to pile up Suze approved8 RulesPBS Special3 bucket approachSuze changed my lifesame sex marriage band end FloridaForeclosurewomen live longeremployer offered life insurancehigh FICO scoreget health insurance2017 Taxesreduce interest ratetake actionwould you decline a bonuspay credit debt ASAPHoliday Shoppinghealthy gums2015 record year car salesOverspendingdream schoolbuying car 2016mobile appbuy home401(k) Contributionspresident Obamahealthy teeth401Kenjoy saving grandchild summer job IRA contributionlife insurance name trust as beneficiaryEric Dodge dental discount plantax refund fraudno life insurance financially irresponsiblerepay student loansSandy Hook Elementary Schoolstudent loan debtpaid vacationno fee transferface your financial fearvalentines daytraditional vs roth 401(k)financial goal phrasebig results Telepicturesreferrals short term goal always use all paid time off30 year mortgage adjust allocations only offered while employed push yourself to save more for retirementIRA contribution gifted moneycar leasingtitle insuranceinterest capitalizationLoveshop online guaranteed level term policyFinancial Gift Clifflive below your meansbad retirement planningbuying a carlowest cost fund option3% debt transferred term insuranceLong Term Care shoppingmonthly dental insurance premiumavoid burn outhigh credit score discountmax employee matchhome buying budgetstretch out haircut appointmentsETF'scharges on credit cardincreased auto insurance premiumWarner Bros Television Groupmeet monthly Financial EducatorHDHP's are not badsocial security never insolventARM Cautionclosing costs 2% of loanFederal Stafford loan!00% tuition paiddon't buy wantsgift grandchild IRA contribution50 over 50store credit cardsLong Term Care Insurance reduce withholdingget over life insurance phobiaresponsible with moneynew carfull retirement ageearn allowanceclosing disclosuremultiple lenders20% equityfocus on needstoo expensive schoolRevocable Truststudentlong-term care premiumsbe kind to yourselfcompare monthly expensesHDHP'sHow To Build Creditcostly legal quick closingfour steps to retirement savings low down paymentlower mortgage interesthealthy retirement weightFixed Rate MortgageBaby Boomersshorter payback periodTeachBill and Pennyincrease retirement savingsCory Bookerpositiveadult childrengay marriage ban end Florida social security not going brokeWillbad decisionsstudent loan repayment planage appropriate choreconsider roth 401(k)Influential CelebrityGiftsdo not pay allowance for good behaviorhome ownershiplong term goalCivil Rightsreal estate mistakeslower overall drug costincrease retirement contribution rateGracedeath benefit needs for familyinitial tax break closing feesdon't ignore open enrollmenttelevision hostapproved medical 100% tax-freeForbes Top 10contribute household expenses high premiumspay 100% cashdear suzederailed planmental healthmarriage inequalitySuze Orman spouse Kathy Travisretirementdental savings plannot gender specific age appropriate goalsfocus on new truth loan necessitydebit cardletter to suzeloan no longer than 36monthsBeautywaive home inspection bidstudent loan repayment estimatorrequired disclosuremortgage brokerfraudulent returnspeak new goalprotect and provide for minor child cut monthly cable billMoneyno interestraise insurance deductiblelife insurancepay down car loanautomatic paymentPrime Rate Rise 2015federal student loan deferment interest on student loansAmy LacyetChanging Livesno late fee Fiscal Responsibilitydon't do five year car loanburn outrolloverpay high rate off first20 year level term Urbana-ChampaignCommunication Skills costly insurance mistakeprotect your familybetter loan ratescredit reportMortgage Credit Availability Indexinsurance yearly reviewgift up to 14,000car buying mistakesconfident of solutionaccelerate dental workStudent Debt Crisisrent vs buyspecial saving accountSuze is my biggest mentordon't extend mortgage LTCmanage student loansswitch to spouse coveragehighest possible benefitCiti Simplicity Card physical healthemployer funding HSAback-to-school budgetannual cost of living adjustmentlong-term care no waiting periodstandard ratewives should be involved in retirementraising interest ratesschedule vacationget the most out of social security One Wallet At A Timelow credit scoreunder 18 financial gifttaxes20% down paymentCredit scoreGay Couplesworkaholic10% donate to charitydon't spend 15-year refinance dealpowerful4 Must Have Documents non conventional route740 credit scoreis it necessaryverify wellness screening and programsdebtForbessidelinedsocial securitysave moneyAmericans don't use all paid vacation timeno splurge learn good financial choicesbest loan deal Interestoverspend on dining outretirment savingsone annual feenot enough life insurancecredit unionautomatic withdraw to savings housing marketHigh FICO Score = Better Ratesavingspercentage men widowed 75-84FICO ScoreNewtown40% toward financial goalidentity theftWall Streetproperty taxhome buying seasonpay down student loan debtUniversity of Illinoisdebt freeCredit Card Interest Ratebetter loan dealsAdequate Auto and Home Insurancecommunity bankfinancial argumentssuccessCOLAallowancealternative FICO scorepeace of minddangerous money seasonsummer job match income identity fraudAARP Social security calculatorFinancial Adviceat worst still pay 75% benefitEmployer Matched Contributionis it true? teensAshley Springerfinancial independenceovercome financial fearsno apologyFinancial Awareness Video Festival10 year repayment plan Retirement Incomedo you need life insurancelower rategrandparent IRA contribution unexpected expensedoctor no longer in networklow mileage discountFinancial Solutions For Youritual scheduleschool no tax on withdrawlsdon't defer interest paymentsLegal GuardianUS Tax CodeFICO at least 720School of Social Workjanuary billscomparison shoppingstandard deduction no private loansknow before you oweitemized deductionverify retirement plan with HR or plan sponsormoney vowsVital DocumentsPrime Rate Increaseswitch to roth 401(k)commitonly refinance if it paysFinal Goodbyecut monthly cellular billchildren under 18planCNBCGoodbyemaintain standard of livingno private loancompare provider pricingautomate student loan paymentsFICO credit score credit card mortgagebuy down Commencementrising home pricescontribution eliminate credit card debtfinancial concernCPI-Wdon't blow tax refundFinancial Awarenesssetup automatic savings withdrawignore 6 month grace period Influentialsincentives for health care wellness screening6 month waiting periodsecured cardmoney-aware childHDHP's are good for youSwap Older Annuities or Life Insurance purely financial standpointPay Off Debt Before RetirementCredit Card Rate Increasemake saving a pleasurezero rate transfer dealspermanent life insuranceterm life insurancebetter termsNew american Dream Financial SystemPhyllis Shelton expert long-term careinsurancepoint cost offset by savingsprescription tierRichborrowing plan Heartemergency fund savingsSuze Orman's Money Warsstay positiveeight month living expense lousy investmentdangerous retirement planSandy Hook Promisehome budget after tax costWashingtonkid borrow firstloved ones dependent on incomedon't cover cosmetic dentistrymax benefit coveredYoung Adult AccuQuote.comfinancial fearscost of capitalization calculatorcredit managementprotect dependent calculate dependents annual income needspercentage of women widowed 75-84reduce monthly paymentSuze OrmanLifestylepay more than minimumprotect loved ones Federal Reservedon't derail retirement savingsrefundgift not loanSave Us Moneycollege graduateinsurance mistakeExhibitionStudent Loanfinancing car 20 to 25 times annual incomeBankruptcyreal estate marketFHA loan feesjuggle multiple financial goalsMost Influential Celebrities ListFederal PLUS loanpay off debtsavings pleasureFree Debt Eliminatorkeep a scheduleRevocable Living Trustemotional stakespaid in fullmortgage disclosurerequire chore in exchange for allowancepublic service loan forgiveness programSpendingraise your deductibleprovider of financial supportcar loandental insurance staycationSelectQuote.com


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