Several years ago the U.S. Congress tried to protect consumers from a few unscrupulous lenders by requiring all lenders to calculate and disclose the annual percentage rate (APR) you pay on your mortgage loan. But most homebuyers will learn more by directing their attention to the Good Faith Estimate of Settlement Costs (GFE). Although Congress meant well, in practice the APR is not helpful and may be confusing.
If you are looking for a good way to understand your costs of borrowing and/or to compare one lender's costs to another, the GFE is your best bet. Get your lender(s) to provide a written GFE before you commit your mortgage business. When reviewing a GFE, keep in mind that the lender actually controls only a certain portion of the disclosed costs. Other parties typically control costs of appraisal, settlement, title insurance, recording fees and taxes, survey, and the "prepaid" expenses of homeowner's insurance, mortgage insurance, real estate taxes, etc. Review these origination fees, discount points, etc. and you will have the ability to understand the full costs of your proposed mortgage loan.
Augie & Calla Bertao Bertao Real Estate Group 330 Tres Pinos Rd. Ste., F-2 Hollister, CA. 95023 License #:01821492 Office: 831-637-7253 Cell: 831-524-5400 Fax: 866-699-2372 Email: augieandcalla@bertao.com Email: wesellhollister@number1expert.com
Augie and Calla have served San Benito County since 1986. They are a full time husband and wife team with over thirty years of combined real estate experience. As consistent "Top Producers", specializing in single family residence and relocation services, Augie and Calla are committed to serving you with professionalism and excellence. Call us for our professional advice.
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Hollister, San Juan Bautista, Gilroy, Morgan Hill and Aromas, California
