Real Estate with Sanda O’Brien: tips and information on selling and buying homes in Brookline, Boston, Newton, and Needham; Buyers Agent; Green Certification; Sellers Agent; Certified Relocation Specialist.

Good Faith Estimate (GFE)

GFE Shopping for a mortgage? One difficulty when shopping for mortgages is that the lender with the lowest rates often isn't offering the best deal. High fees can wipe out the benefits of low rates, and little-noticed features such as prepayment penalties can creep up later. Even for savvy consumers, it is hard to compare different combinations of rates, points (paid in exchange for a lower rate), fees and other terms. Good Faith Estimates (GFE) have been around since the 1970’s, when “points” became part of the mortgage landscape. To protect the consumer, the government requires that lenders disclose to borrowers all the details of the deal, by presenting the Good Faith Estimate. They have to break down the lending fees and explain the real interest rate the borrower will pay by merging the points into the rate (APR), and thus make it easier to compare mortgage terms. As of January 1, 2010 the rules for disclosing the details of a proposed mortgage include a standard form, which lenders must use.  This will make it  easier for borrowers to compare various offers. Click on the form example below to see a downloadable and printable pdf file of the entire form. GFE  photo exerpt of GFE form