RISMEDIA, December 24, 2009—The U.S. Department of Housing and Urban Development (HUD) recently released a new settlement cost booklet to help consumers shop for the best mortgage to meet their needs. This booklet will help borrowers become familiar with the various stages of the home buying process, including deciding whether they are ready to buy a home, and providing factors to consider in determining how much home they can afford. Consumers will also learn about the sales agreement, how to use HUD’s new standard Good Faith Estimate to shop for the best loan, required settlement services, and the HUD-1 Settlement Statement they will receive at closing.
The booklet will help consumers become familiar with how interest rates, points, balloon payments, and prepayment penalties can affect their monthly mortgage payments. In addition, there is important information about your loan after settlement, including how to resolve loan servicing problems with your lender, and steps you can take to avoid foreclosure. After you have purchased your home, this booklet will help you indentify issues to consider before getting a home equity loan or refinancing your mortgage. Finally, contact information is provided to answer any questions you may have after reading this booklet.
For more information, visit www.hud.gov.