Released: August 03, 2008

Don’t fall for the mortgage rip offs

Source: Michelle Singletary, Washington Post (Free Registration)

A little-known provision in the Housing and Economic Recovery Act, recently signed into law by President Bush, is supposed to help home buyers understand how much debt they are taking on to purchase their home.

The law requires clear disclosure to ensure that borrowers know their maximum monthly payment—based on the maximum interest rate allowed under the terms of their loan.

The legislation requires that lenders disclose the information to borrowers no later than seven days before closing so borrowers can shop around if they are not satisfied with the terms.

Read Full Article: Don’t fall for the mortgage rip offs