Your rights when getting a mortgage

Question:

I am in the process of getting a refinance mortgage loan, what should I look for and what are my rights as a borrower?

Answer:

You are entitled to a lot more than you think. The Real Estate Settlement Procedures Act informs of your costs to help protect you from abusive practices. Below is a list of your RESPA rights:

•You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.

•You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.

•You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.

•You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.

•You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.

•You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.

•You have the RIGHT to ask questions about charges and loan terms that you do not understand.

•You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance.

•You have the RIGHT to know the reason if your loan was turned down.

•You have a RIGHT to ask for the HUD settlement cost booklet “Shopping for Your Home Loan.”

For HUD’s settlement cost booklet and other helpful information about RESPA call (800) 569-4287 or visit www.hud.gov

SOURCE: U.S. Department of Housing and Urban Development www.hud.gov

If you want answers to your housing questions please email them to [email protected].

This information is for educational purposes only. Always seek a trusted attorney and/or U.S. HUD approved counselor for all major housing transactions. Call (800) 569-4287 or visit ww.hud.gov to locate one.

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