Within three days of applying for a mortgage, you’ll get a “Good Faith Estimate” that lays out all of the terms and fees for the loan you want.
But are you getting the best possible deal?
On Jan. 1 the government required lenders to start using a new, standardized GFE that can help you decide.
On the last of the three pages you’ll find two new comparison charts that weren’t on the old GFEs created by banks and mortgage companies.
The first is called the “tradeoff table,” and shows what your monthly payments and closing costs might be for slightly different mortgages from the same lender.
The first option shows what you’d pay with lower settlement charges, which is great if you’re short on cash, but with a slightly higher interest rate and monthly payment.
The second option is for a loan with a lower interest rate, and lower monthly payments, but higher settlement charges.
The “shopping chart” allows you to compare similar loans from different lenders, including the interest rate, monthly payments and closing costs.
You can see even more comparisons like that by searching our extensive database of mortgage rates available in your area.
Even if you’ve already applied for a mortgage, it’s not too late to put the approval process on hold and pursue a better deal.