Don\’t Want to be the Next Predatory Lending Foreclosure Victim? Mortgage Loan Comparison Worksheet

I am a former senior loan officer for a regional mortgage bank. It made me sick to see how we took advantage of consumers for thousands of extra dollars. Sometimes these were smart people who simply didn\'t know any better.

Problem is, most borrowers only make a decision once every seven years, so how would they even know what to look for? As a loan officer, my mission was not to educate, but to get a signature on the bottom line, at any cost.

So I developed this simple Mortgage Loan Comparison Worksheet. If borrowers just used this easy tool when shopping for a mortgage, predatory lending and the resulting foreclosures in this country could virtually be eradicated:

Mortgage Loan Comparison Worksheet

Loan Terms

How long is the mortgage for? ____ years

If it is a FIXED RATE mortgage, what would be the monthly payment (for principal and interest)? $________

If it is an ADJUSTABLE RATE MORTGAGE (ARM), what would be the INITIAL monthly payment? $________

What could be my MAXIMUM monthly payment? $________\r Could I afford it?

Loan Components

The total amount of the mortgage: $_________

The amount dedicated to the purchase of the property: $_________

The difference between the two figures is due to:

Broker\'s commissions (examples: loan origination fee, points) $_________

Pre-paid items (examples: property taxes, homeowner insurance) $_________

Other closing costs (examples: survey, flood certification fee) $_________

Any \"junk\" fees (example: document preparation fee) $__________

Is there a mortgage pre-payment penalty? If so, how much $_________

Is the broker also earning a yield spread premium by upselling the rate to me (example: he or she obtains the funds at 5.5% and is selling me the rate at 6.0% to earn additional commission)? ___ Yes ____ No

Is the broker also earning a Service Release Premium (possibly by acquiring the funds, for example, at 9% and selling them to me at 11%)? ____ Yes ____ No

HUD-1 Statement

Has this broker been known to inflate the fees or the interest rate just prior to closing? ___ Yes ____ No\r (Request a HUD-1 statement before closing and compare the figures to those on your Good Faith Estimate and Truth-In-Lending Statement.)

Ted Janusz is the author of Kickback: Confessions of a Mortgage Salesman, one of the best selling books on mortgages on Amazon. Spending an hour with this book, written in plain English with no legal jargon, can help you feel more confident before you meet with your loan officer, can save you thousands of dollars and can also help you avoid a possible foreclosure and years of regret. For more information, please visit http://www.januspresentations.com You may also email Ted at ted@januspresentations.com

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