Make sure you understand the fine print!
It’s a great time to buy or refinance a home. Interest rates are extremely low (As of Jan 2009 a no points, 30 year fixed, mortgage rate of 5% is very common). While this great interest rate opportunity creates a terrific chance to lower your monthly payment, it also can create confusion. The confusion lies in understanding the good faith estimate (GFE) and the HUD closing statement.
The GFE is the proposal the lender sends to you outlining your projected closing costs and the new mortgage payment amount. So often people will only …Read More