A "bill Of Rights" For Homebuyers

There's good news that you need to know if you are shopping for a mortgage-it's called the "Borrower's Bill of Rights" and it's designed to help borrowers understand their mortgage options and ask the right questions when trying to secure the mortgage that's right for them.

Remember:

• A borrower has the right to clear and forthright explanations of the terms and conditions of a loan.

• A borrower has the right to timely and truthful disclosures regarding the rates and costs of the loan.

• A borrower has the right to accurate disclosure of final annual percentage rate and amount of regular payments at the time of loan/closing settlement.

• A borrower has the right not to be subject to deceptive marketing tactics.

• A borrower has the right to obtain credit counseling prior to closing on the loan.

• A borrower has the right to have a lender consider the borrower's ability to repay the loan before such credit is extended.

• A borrower should receive an identifiable benefit when charged a fee or a higher interest rate to refinance a loan.

• A borrower has the right to not be subject to a requirement that he or she finance any portion of points or fees.

• A borrower has the right to decline credit insurance in connection with a loan.

• A borrower has the right to a fair and equitable resolution to any disputes related to his or her loan.

• A borrower has the right to have favorable information reported to credit bureaus on a timely basis.

According to the "Borrower's Bill of Rights," homebuyers have the right to a clear and understandable explanation of the terms of a loan.

By: Wendy Mitchell

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Learn more about how to find the mortgage that's right for you at a Web site sponsored by Mortgage Bankers Association, HomeLoanLearningCenter.com. The information is available in both English and Spanish. The site is filled with interact-ive tools that allow you to compare your options, as well as crit-ical information to help you become an informed and successful homebuyer.