Full Disclosure Mortgage Brokers (FDMB)

Find the FDMB Broker in Your State
 

APR Calculator
How Much is Your Loan Really Costing You

Click here to open the calculator in a new window.

How to Use this Calculator:  When you receive your estimated Settlement Statement (HUD-1), that gives you all the closing costs of your loan and the Truth in Lending statement, that gives you your interest rate and APR, use this calculator to determine the true costs of your loan.

Step 1: Clear all fields

Step2: Enter your loan amount

Step 3: Enter your interest rate

Step 4: Enter the fees charged by your lender or broker (included in these fees are the origination Points, credit inquiry fee, if using a broker; the lender fees; appraisal, title and escrow fees are not part of the APR calculation)

Step 5: Hit “Calculate”

If the APR does not match the APR on the Truth in Lending Statement, the loan has a rebate (hidden fee) associated with the loan.

Step 6: Keep adding or subtracting to the fee amount until the APR matches the APR on the Truth in Lending Statement.  This is the true cost of your loan.

Important Note: Lenders & Mortgage Bankers do not have to include the rebate (hidden fees) in the APR calculation, nor do they have to disclose the hidden costs on the GFE or estimated Settlement Statement (HUD-1).  Only brokers who are not correspondent brokers or those with warehouse lines of credit must include the rebate in the APR calculation and disclose the cost on the estimated HUD-1 received at or on the date of signing.
Shopping for the right mortgage professional can be a great challenge, if a consumer does not understand the loan process and how lenders and brokers earn their fees. Instead of shopping for a loan, the key is to shop for the right loan officer, who will give you the best possible rate and fee package and keep their commitments to you from the start of the loan process to closing. We have helped with this burden by shopping for mortgage brokers who have agreed to follow all the commitments outlined in “Successfully Navigating the Mortgage Maze,” ensuring that consumers understand all the terms of their loan and they receive the loan they were promised.
 
There are no hidden fees, when the loan is locked the interest rate will never change and if there are any fees not disclosed on the Good Faith Estimate consumers receive, the FDMB will pay those fees, never passing the cost onto the borrower. FDMBs will not always have the lowest rate, because honest brokers can’t and won’t quote rates and fees that they do not intend to honor. Recent Senate testimony stated that 83% of consumers pay higher rates or fees at closing than they were originally promised. By working with a FDMB, consumers will have total confidence that they will receive the loan they were promised..
 
Consumers can click on the links below to read the definitions for the mortgage terms contained in the commitments below.
 
FDMBs Commitments to Consumers:
  1. Consumers will be charged 1 Point (1% of your loan amount) with no hidden fees that raise your interest rate above the best available on the day you lock your loan (FHA loans in states with lower home values will based on the following; Loans that exceed $500,000, the broker fee will be capped at $5,000 no matter how large the loan. Loans that are less than $300,000 will pay a flat broker fee of $3,000.

    The consumer, at their option, can have the broker fee built into the interest rate  instead of paying for it out of pocket or using the equity in their home. The Yield Spread Premium (rebate) will not exceed the agreed to fee either alone or in        combination with the origination fee.
     
  2. Consumers will receive a Good Faith Estimate (GFE) on the day of the initial interview with the mortgage broker. The broker will provide the GFE without demanding your Social Security number and will answer all your questions. They will rely on the consumer’s representations of their credit scores, home value and monthly income. The rate and fees quoted on the GFE will not increase, unless the credit scores, income and home value do not reflect the information given by the consumer during the first interview or the consumer does not lock their rate on that date. All title, escrow, lender and government fees will be disclosed on the GFE. (Please refer to “Preparing for a Loan” page to be ready to speak with a loan officer)
     
  3. When the consumer requests that their loan be locked, they will receive a Truth in Lending statement that will disclose the interest rate, Annual Percentage Rate (APR), payment schedule and whether there is a prepayment penalty. The APR will reflect that the FDMB is charging the agreed fees which can be confirmed by using the APR Calculator on the Preparing for a Loan page.
     
  4. Within 48 hours of locking the loan, the broker will email the “Rate Lock Confirmation” document to the consumer that will show the rate they received and the rebate the broker is receiving, if any.
     
  5. FDMBs will not increase your fees, even if they forgot an item or underestimated a fee, because they will pay for any mistake on their part.
     
  6. FDMBs will tell you the current available Par rate on the day they speak with you.
     
  7. FDMBs will give you their best advise as to whether locking or floating your rate will help you to receive the best possible rate based on current market conditions.
     
  8.  After locking your loan, FDMBs will email you the “Truth in Lending Statement” that will disclose the terms of your loan, including the APR, payment schedule and whether you have a prepayment penalty or not.
     
  9. FDMBs will have escrow email their borrower the Est. HUD-1 (shows all fees associated with the loan), Note (provides the terms of the loan such as, interest rate, monthly payment and any prepayment penalty clause if applicable), Truth in Lending statement (contains the APR, payment schedule, and indicates whether there is a prepayment penalty or balloon payment) so the consumer will have time to review all the terms of their loan.
     
  10. Consumers will have the right to have the appraisal transferred to a new lender or broker if they have paid for the appraisal out-of-pocket and the FDMB has increased the rate or fees associated with the loan through no fault of the consumer.
We demand strict adherence to the commitments above. If a lender or broker fails to follow these commitments while you are working with them, we want to know, please email us at info@mortgage-maze.net with your comments. We also want to hear about your great experiences and satisfaction with our brokers, please let us know so we can continue our relationship with those brokers who follow all of the guidelines.
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