from Scripps Howard News Service
A group of federal agencies have put together a brochure to help consumers get the most out of a home loan or mortgage.
The federal Interagency Task Force on Fair Lending brochure notes that shopping around for a home loan or mortgage is similar to shopping for a car--consumers should obtain information on all costs of the loan and negotiate for the best deal.
The brochure describes how comparing and negotiating interest rates, fees and other payment terms may help consumers get the best financing and possibly save thousands of dollars, whether it's a home purchase, a refinancing, or a home equity loan. It advises consumers to:
- Seek information from several lenders.
- Be sure to obtain all-important cost information.
- Negotiate for the best deal.
For example, the brochure notes that on any given day, lenders and brokers may offer different prices for the same loan to different consumers, even if consumers have the same loan qualifications. These different prices may result because loan officers and brokers often are allowed to keep some or all of the difference between the lowest available price and any higher price that the consumer agrees to pay. This compensation arrangement helps explain why it is important for consumers to ask questions about costs and negotiate for the best deal.
The brochure contains a worksheet for comparing costs while shopping. It lists commonly charged fees and closing costs and includes a useful list of questions consumers may wish to ask lenders when they shop for a loan.
The free publication outlines common sources for home loans and explains the difference between rates, points, and fees and also highlights some of the laws that protect consumers from unfair lending practices.
The members of the Interagency Task Force include the Department of Housing and Urban Development, Department of Justice, Department of the Treasury, Federal Deposit Insurance Corporation, Federal Housing Finance Board, Federal Reserve Board, Federal Trade Commission, National Credit Union Administration, Office of Federal Housing Enterprise Oversight, Office of the Comptroller of the Currency and Office of Thrift Supervision.
Copies of the brochure, "Looking for the Best Mortgage: Shop, Compare, Negotiate," are available from those agencies and the Consumer Information Center, Pueblo, CO 81009 or the Center's Web site at
www.pueblo.gsa.gov.
