What are total closing costs?
In addition, HUD will require that the compensation lenders pay to mortgage brokers be more fully disclosed. These so-called “yield spread premiums” are rarely understood by, or fully disclosed to, borrowers. These premiums are directly tied to the higher interest rates that borrowers pay. Consumers deserve to understand this and they need to get credit for essentially paying these premiums. HUD’s new Good Faith Estimate will offer consumers more certainty about the loan they’re agreeing to. And with a standardized GFE, consumers can shop more effectively for the lowest cost loan. We will also make changes to the HUD-1 settlement statement that consumers see at the closing table. Each designated line on the final HUD-1 will include a reference to the relevant line from the GFE. This will allow borrowers to easily compare their final loan terms and closing costs with those listed on their Good Faith Estimate. Buying a home in America should be the fulfillment of a dream. Instead, millio
