Interest Rates…..
FHA…..5.375%
Conventional……..5.25%
Jumbo……5.5%
What’s new in the Mortgage World?
Truth in Lending…I know, there is no “truth” in lending….HaHa
The TIL (truth in lending) Disclosure that we spoke about in last week’s article has taken a new twist.
The Feds have touched my world and yours too if you are buying, selling or refinancing a Miami home loan going forward.
There are waiting periods that must pass after showing documented verification of receipt of the ARP (annual percentage rate)
The APR is part of the TIL Disclosure. Kind of like buying a gun …The Federal Govt. wants there to be time between being properly informed of the rates and fees and the time you go to closing. But as I stated last week….You should take the time to review who you are doing business with before actually doing business with them. The TIL is only as accurate as the person filling it out and their familiarity with the third party fees being quoted. Remember that it’s not just the lenders fees that are included in the fees being calculated into the APR….it’s the title companies’ fess as well. All the “junk” fees are thrown into the mix.
So no more rush closings….not even if the intentions are to accommodate the buyer or to fix the errors of others. 7 Business days must pass from receipt of the TIL and an additional 3 Business days if a re-disclosure is needed due to the TIL being off by more than an 1/8 in APR from the initial TIL.
Sounds pretty harmless unless you have a rate expiring and your one day from closing and the APR is off by more than an 1/8th up or down …..and how ‘bout if the rates are now a ½ higher than when you originally locked in… OUCH ! Or how about if the moving van is parked outside and little Johnny starts school on Monday in the new town a state away?
If you have confidence in your Realtor…and you should…then ask for a referral of a qualified lender and closing agent that will not let your deal be delayed over a disclosure that arguably is the least understood document signed at closing. Don’t let the technical crossing of the T’s and dotting of the I’s delay your American Dream of Home Ownership
Brian Scott
