Several years ago the U.S. Congress tried to protect consumers from a few unscrupulous lenders by requiring all lenders to calculate and disclose the annual percentage rate (APR) you pay on your mortgage loan. But most homebuyers will learn more by directing their attention to the Good Faith Estimate of Settlement Costs (GFE). Although Congress meant well, in practice the APR is not helpful and may be confusing.

If you are looking for a good way to understand your costs of borrowing and/or to compare one lender's costs to another, the GFE is your best bet. Get your lender(s) to provide a written GFE before you commit your mortgage business. When reviewing a GFE, keep in mind that the lender actually controls only a certain portion of the disclosed costs. Other parties typically control costs of appraisal, settlement, title insurance, recording fees and taxes, survey, and the "prepaid" expenses of homeowner's insurance, mortgage insurance, real estate taxes, etc. Review these origination fees, discount points, etc. and you will have the ability to understand the full costs of your proposed mortgage loan.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Scott Team Real Estate
RE/MAX Pembroke Realty Ltd.
182 Pembroke Street East
Pembroke, ON Canada K8A 3J7
Phone #: 613-732-3601
613-735-8188
866-735-8188
Fax #: 613-732-0999
Drew Scott: Drew@ScottTeamRealEstate.com
James Scott: James@ScottTeamRealEstate.com

The Scott Team has experience in all aspects of Real Estate. Our unique approach guarantees your needs are handled professionally and timely. The Drew Scott Team specializes in serving Petawawa, Pembroke and Renfrew County. Always putting you first!

www.ScottTeamRealEstate.com is brought to you by The Drew Scott Team, real estate for
Pembroke, Petawawa and Renfrew County, Ontario

Read The Drew Scott Team's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge