If accepted, new disclosure rules for mortgages should help home buyers to understand the true costs of buying a home.  A standard Good Faith Estimate proposed by the Department of Housing and Urban Development will provide new home buyers with the loan’s interest rate and monthly payment, as well as specifics on when and if the interest rate will change and whether the loan has penalties for prepayment or a balloon payment

    HUD feels that many of today’s mortgage problems are the direct effect of borrowers not understanding what they were signing at the closing table.  The Orlando Business Journal has an article that does a great job of explaining the proposal and how it would work.

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