EXAMPLES OF COMPLETED CLOSING SCRIPTS
Example 1 – Fixed Interest Rate Mortgage
THESE ARE YOUR LOAN DETAILS
The following is a summary of many important details involving the mortgage loan for 123 Main Street, Hometown, USA 00000. Let’s compare these important details with the Good Faith Estimate (GFE), loan documents, and other disclosures.
Loan Amount
$300,000.00 |
Loan Term
30 year |
Loan Type
FHA Insured Fixed Rate |
Fixed Interest Rate
Your loan has a fixed interest rate of 6.5%.
A fixed interest rate means that your interest rate will not rise over the life of the loan.
Payment
Your loan payment for principal and interest ($1,896.20) and mortgage insurance ($62.00) is $1,958.20 and cannot rise.
You have an escrow account. In addition to any mortgage insurance, your initial escrow payment is $200.00 for property taxes and homeowners insurance. This amount may increase.
Your total payment is $2,158.20 for principal, interest, any mortgage insurance, property taxes and homeowners insurance.
Late Payment
Your loan payment is due on the 1st of every month and is considered late after the 15th of every month. If your lender receives your mortgage payment after the 15th, your lender will charge a late fee of 5% of the overdue payment of principal and interest.
Loan Balance
Your loan balance cannot rise.
Prepayment Penalty
You do not have a prepayment penalty.
Balloon Payment
You do not have a balloon payment.
Closing Costs
Next we will review all of the HUD-1/1A charges and credits associated with your loan and compare them to the GFE you received when you applied for this loan.
GFE & HUD-1/1A Charges Comparison Chart |
|||||||
|
Good Faith Estimate |
HUD-1/1A |
$ Increase |
||||
Charges Cannot Increase |
|
|
|
||||
Our service charge (HUD-1/1A Line #801) |
$6,000.00 |
$6,000.00 |
0 |
||||
Your credit or charge for the specific interest rate chosen (HUD-1/1A Line #802) |
-$4,000.00 |
-$4,000.00 |
0 |
||||
Your Adjusted Origination Charges (HUD-1/1A Line #803) |
$2,000.00 |
$2,000.00 |
0 |
||||
Government recording and transfer charges (HUD-1/1A Line #1201) |
$1,250.00 |
$1,250.00 |
0 |
||||
|
|
|
|
|
|||
Charges Cannot Increase More Than 10% |
|
|
|||||
Appraisal (HUD-1/1A Line #804) |
$300.00 |
$300.00 |
|
||||
Credit Report (HUD-1/1A Line #805) |
$40.00 |
$23.00 |
|
||||
Tax service (HUD-1/1A Line #806) |
$70.00 |
$70.00 |
|
||||
Flood certification (HUD-1/1A Line #807) |
$12.00 |
$12.00 |
|
||||
Mortgage Insurance Premium (HUD-1/1A Line #902) |
$62.00 |
$62.00 |
|
||||
Survey____________________________ (HUD-1/1A Line #1301 ) |
$175.00 |
$145.00 |
|
||||
Pest Inspection_____________________ (HUD-1/1A Line #1302 ) |
$45.00 |
$45.00 |
|
||||
_________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||||
|
|
Total |
$704.00 |
$657.00 |
|
||
*Increase between GFE and HUD-1/1A Charges |
0% |
||||||
|
|
|
|
|
|||
Charges Can Change |
|
|
|||||
Reserves or escrow (HUD-1/1A Line #1001) |
$262.00 |
$262.00 |
|
||||
Daily interest charges (HUD-1/1A Line #901) $53.42 per day |
$53.42 |
$106.84 |
|
||||
Homeowners insurance (HUD-1/1A Line #903) |
$600.00 |
$610.00 |
|
||||
Title services and lender's title insurance (HUD-1/1A Line #1101 ) |
$975.00 |
$975.00 |
|
||||
Optional owner's title insurance (HUD-1/1A Line #1110 ) |
$725.00 |
$725.00 |
|
||||
___________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||||
Acknowledgment
The undersigned hereby state that the Closing Script was read and the following information was provided and explained:
The comparison between the charges listed on the HUD-1/1A settlement form and the estimate of charges on the GFE;
Whether or not the tolerances have been met within the applicable categories between the GFE and the HUD-1/1A; and
Any inconsistencies between the loan documents (including the mortgage note) and the summary of the loan terms on the GFE, and between the HUD-1/1A settlement charges and the charges stated on the GFE.
__________________ (Representative) ___________________ (Company)
__________________ (Borrower) ___________________ (Borrower)
__________________ (Date)
Example 2 – Adjustable Rate Mortgage
This is a summary of many important details involving the mortgage loan for 123 Main Street, Hometown, USA 00000. Let’s compare these important details with the Good Faith Estimate (GFE), loan documents, and other disclosures.
Loan Amount
$300,000.00 |
Loan Term
30 year |
Loan Type
Conventional Adjustable Rate
|
Adjustable Rate Mortgage
Your initial interest rate is 6.5%
Your loan has an adjustable interest rate, which means that the interest rate can rise over the life of the loan.
Your first interest rate adjustment or change date is January 1, 2008 and may change every 12 months thereafter. Your interest rate can increase or decrease by 2.0% on every change date, but will never be lower than 4.5% or higher than 10.5% over the life of the loan.
Payment
Your initial loan payment for principal and interest ($1,896.20) and mortgage insurance ($0) is $1,896.20 and can rise.
The highest your principal and interest payment can reach, based on the maximum interest rate of 10.5% is $2,744.22. The earliest it can reach this is January 1, 2010.
You do not have an escrow account. Any and all items such as property taxes and homeowners insurance must be paid directly by you.
Your total initial payment is $1,896.20 for principal, interest, and any mortgage insurance.
Late Payment
Your loan payment is due on the 1st of every month and is considered late after the 15th of every month. If your lender receives your mortgage payment after the 15th, your lender will charge a late fee of 5% of the overdue payment of principal and interest.
Loan Balance
Your loan balance cannot rise.
Prepayment Penalty
You have a pre-payment penalty.
A prepayment penalty is an additional amount that you will be required to pay if you pay your loan off early such as through the sale of your home, refinancing your loan, or if you make significant additional payments to principal prior June 1, 2010. Based on your initial loan amount, your prepayment penalty may be as high as $9,400.00.
Balloon Payment
You do not have a balloon payment.
Closing Costs
Next we will review all of the HUD-1/1A charges and credits associated with your loan and compare them to the GFE you received when you applied for this loan.
GFE & HUD-1/1A Charges Comparison Chart |
|||||
|
Good Faith Estimate |
HUD-1/1A |
$ Increase |
||
Charges Cannot Increase |
|
|
|
||
Our service charge (HUD-1/1A Line #801) |
$6,000.00 |
$6,000.00 |
0 |
||
Your credit or charge for the specific interest rate chosen (HUD-1/1A Line #802) |
-$4,000.00 |
-$4,000.00 |
0 |
||
Your Adjusted Origination Charges (HUD-1/1A Line #803) |
$2,000.00 |
$2,000.00 |
0 |
||
Government recording and transfer charges (HUD-1/1A Line #1201) |
$1,250.00 |
$1,250.00 |
0 |
||
|
|
|
|
|
|
Charges Cannot Increase More Than 10% |
|
|
|||
Appraisal (HUD-1/1A Line #804) |
$300.00 |
$350.00 |
|
||
Credit Report (HUD-1/1A Line #805) |
$40.00 |
$45.00 |
|
||
Tax service (HUD-1/1A Line #806) |
$70.00 |
$85.00 |
|
||
Flood certification (HUD-1/1A Line #807) |
$12.00 |
$15.00 |
|
||
Mortgage Insurance Premium (HUD-1/1A Line #902) |
|
|
|
||
Survey____________________________ (HUD-1/1A Line #1301 ) |
$175.00 |
$175.00 |
|
||
Pest Inspection_____________________ (HUD-1/1A Line #1302 ) |
$45.00 |
$45.00 |
|
||
_________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||
|
|
Total |
$642.00 |
$715.00 |
+78 |
*Increase between GFE and HUD-1/1A Charges |
12% |
||||
|
|
|
|
|
|
Charges Can Change |
|
|
|||
Reserves or escrow (HUD-1/1A Line #1001) |
$262.00 |
$262.00 |
|
||
Daily interest charges (HUD-1/1A Line #901) $53.42 per day |
$213.69 |
$427.36 |
|
||
Homeowners insurance (HUD-1/1A Line #903) |
$600.00 |
$700.00 |
|
||
Title services and lender's title insurance (HUD-1/1A Line #1101 ) |
$975.00 |
$1,075.00 |
|
||
Optional owner's title insurance (HUD-1/1A Line #1110 ) |
$725.00 |
$725.00 |
|
||
___________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||
Acknowledgment
The undersigned hereby state that the Closing Script was read and the following information was provided and explained:
The comparison between the charges listed on the HUD-1/1A settlement form and the estimate of charges on the GFE;
Whether or not the tolerances have been met within the applicable categories between the GFE and the HUD-1/1A; and
Any inconsistencies between the loan documents (including the mortgage note) and the summary of the loan terms on the GFE, and between the HUD-1/1A settlement charges and the charges stated on the GFE.
__________________ (Representative) ___________________ (Company)
__________________ (Borrower) ___________________ (Borrower)
__________________ (Date)
Example 3 – Adjustable Interest Rate with Initial Discounted Interest Rate
THESE ARE YOUR LOAN DETAILS
The following is a summary of many important details involving the mortgage loan for 123 Main Street, Hometown, USA 00000. Let’s compare these important details with the Good Faith Estimate (GFE), loan documents, and other disclosures.
Loan Amount
$300,000.00 |
Loan Term
30 years |
Loan Type Conventional Adjustable Payment Option Mortgage |
Adjustable Interest Rate with Initial Discounted Interest Rate
Your initial interest rate is 1.5%. This is a discounted interest rate and will adjust to 6.5% in 30 days on June 1, 2007.
Your loan has an adjustable interest rate which means that the interest rate can rise over the life of the loan.
Your second change date will be June 1, 2008 and may change every 12 months thereafter. Your interest rate can increase or decrease by 2.75% on every change date, but will never be lower than 4.5% or higher than 10.5% over the life of the loan.
Payment
Your initial loan payment for principal and interest ($1,035.36) and mortgage insurance ($0) is $1,035.36 and can rise.
The highest your principal and interest payment can reach, based on the maximum interest rate of 10.5% is $3,644.95. The earliest it can reach this is June 1, 2013.
You do not have an escrow account. Any and all items such as property taxes and homeowners insurance must be paid directly by you.
Your total initial payment is $1,035.36 for principal, interest, and any mortgage insurance.
Payment Option Mortgage
This type of loan allows you to choose from three payment options: the traditional principal and interest payment, the interest-only payment, and the minimum interest payment. This is what your initial payment choice will look like:
Principal & Interest Payment at 6.5%: $1,896.20
(reduces loan balance) $271.20 principal, $1,625.00 interest
Interest,Only Payment at 6.5%: $1,625.00
(will not reduce loan balance) 0 principal, $1625.00 interest
Minimum Interest Payment at 4.5%: $1,125.00,
(will INCREASE loan balance) $0 principal, $1,125.00 interest
AND $500.00 is added to your loan balance.
If you choose to pay the minimum payment amount, your loan balance will increase. This increase instead of a decrease in your loan balance is called negative amortization. If the loan balance increases, your monthly mortgage payment may also increase to cover the difference.
If your loan balance rises above 125%, as indicated in your Note, your lender has the right to increase your loan payments greatly for the remainder of the loan.
Late Payment
Your loan payment is due on the 1st of every month and is considered late after the 15th of every month. If your lender receives your mortgage payment after the 15th, your lender will charge a late fee of 5% of the overdue payment of principal and interest.
Loan Balance
Your loan balance can rise to a maximum of $375,000.
Prepayment Penalty
You have a pre-payment penalty.
A prepayment penalty is an additional amount that you will be required to pay if you pay your loan off early such as through the sale of your home, refinancing your loan, or if you make significant additional payments to principal prior to June 1, 2010. Based on your initial loan amount, your prepayment penalty may be as high as $9,400.00.
Balloon Payment
You do not have a balloon payment.
Closing Costs
Next we will review all of the HUD-1/1A charges and credits associated with your loan and compare them to the GFE you received when you applied for this loan.
GFE & HUD-1/1A Charges Comparison Chart |
||||||||
|
Good Faith Estimate |
HUD-1/1A |
$ Increase |
|||||
Charges Cannot Increase |
|
|
|
|||||
Our service charge (HUD-1/1A Line #801) |
$6,000.00 |
$6,000.00 |
0 |
|||||
Your credit or charge for the specific interest rate chosen (HUD-1/1A Line #802) |
-$4,000.00 |
-$4,000.00 |
0 |
|||||
Your Adjusted Origination Charges (HUD-1/1A Line #803) |
$2,000.00 |
$2,000.00 |
0 |
|||||
Government recording and transfer charges (HUD-1/1A Line #1201) |
$1,250.00 |
$1,250.00 |
0 |
|||||
|
|
|
|
|
||||
Charges Cannot Increase More Than 10% |
|
|
||||||
Appraisal (HUD-1/1A Line #804) |
$300.00 |
$425.00 |
|
|||||
Credit Report (HUD-1/1A Line #805) |
$40.00 |
$45.00 |
|
|||||
Tax service (HUD-1/1A Line #806) |
$70.00 |
$85.00 |
|
|||||
Flood certification (HUD-1/1A Line #807) |
$12.00 |
$15.00 |
|
|||||
Mortgage Insurance Premium (HUD-1/1A Line #902) |
|
|
|
|||||
Title services and lender's title insurance (HUD-1/1A Line #1101 ) |
$975.00 |
$975.00 |
|
|||||
Optional owner's title insurance (HUD-1/1A Line #1110 |
$725.00 |
$725.00 |
|
|||||
Pest Inspection_____________________ (HUD-1/1A Line #1302 ) |
$35.00 |
$55.00 |
|
|||||
|
|
Total |
$2157.00 |
$2325.00 |
+168 |
|||
*Increase between GFE and HUD-1/1A Charges |
8% |
|||||||
|
|
|
|
|
||||
Charges Can Change |
|
|
||||||
Reserves or escrow (HUD-1/1A Line #1001) |
$262.00 |
$262.00 |
|
|||||
Daily interest charges (HUD-1/1A Line #901) $53.42 per day |
$213.69 |
$427.36 |
|
|||||
Homeowners insurance (HUD-1/1A Line #903) |
$600.00 |
$600.00 |
|
|||||
Survey____________________________ (HUD-1/1A Line #1301 ) |
$150.00 |
$195.00 |
|
|||||
__________________________________ (HUD-1/1A Line #____ ) |
|
|
|
|||||
__________________________________ (HUD-1/1A Line #____ ) |
|
|
|
|||||
Acknowledgment
The undersigned hereby state that the Closing Script was read and the following information was provided and explained:
The comparison between the charges listed on the HUD-1/1A settlement form and the estimate of charges on the GFE;
Whether or not the tolerances have been met within the applicable categories between the GFE and the HUD-1/1A; and
Any inconsistencies between the loan documents (including the mortgage note) and the summary of the loan terms on the GFE, and between the HUD-1/1A settlement charges and the charges stated on the GFE.
__________________ (Representative) ___________________ (Company)
__________________ (Borrower) ___________________(Borrower)
__________________ (Date)
Example 4 – Hybrid Fixed Rate Adjustable Rate Mortgage
THESE ARE YOUR LOAN DETAILS
The following is a summary of many important details involving the mortgage loan for 123 Main Street, Hometown, USA 00000. Let’s compare these important details with the Good Faith Estimate (GFE), loan documents, and other disclosures.
Loan Amount
$300,000.00 |
Loan Term
30 year |
Loan Type
Conventional Hybrid Adjustable Rate Mortgage
|
Hybrid Adjustable Rate Mortgage
Your loan is a hybrid adjustable rate mortgage.
You have an initial fixed interest rate of 6.5%. As long as your interest rate remains fixed, your interest rate will not rise.
Your initial fixed interest rate will change to an adjustable rate mortgage on the first change date, June 1, 2009. The adjustable interest rate may change every 12 months thereafter. Your interest rate can increase or decrease by 2.0% on every change date, but will never be lower than 4.5% or higher than 10.5% over the life of the loan.
When your loan changes from a fixed interest rate to an adjustable interest rate, your interest rate can rise.
Payment
Your initial loan payment for principal and interest ($1,896.20) and mortgage insurance ($0 ) is $1,896.20 and can rise.
The highest your principal and interest payment can reach, based on the maximum interest rate of 10.5% is $2,744.22. The earliest it can reach this is January 1, 2011.
You do not have an escrow account. Any and all items such as property taxes and homeowners insurance must be paid directly by you.
Your total initial payment is $1,896.20 for principal, interest, and any mortgage insurance.
Late Payment
Your loan payment is due on the 1st of every month and is considered late after the 15th of every month. If your lender receives your mortgage payment after the 15th, your lender will charge a late fee of 5% of your loan payment.
Loan Balance
Your loan balance cannot rise.
Prepayment Penalty
You have a pre-payment penalty.
A prepayment penalty is an additional amount that you will be required to pay if you pay your loan off early such as through the sale of your home, refinancing your loan, or if you make significant additional payments to principal prior to June 1, 2010. Based on your initial loan amount, your prepayment penalty may be as high as $9,400.00.
Balloon Payment
You do not have a balloon payment.
Closing Costs
Next we will review all of the HUD-1/1A charges and credits associated with your loan and compare them to the GFE you received when you applied for this loan.
GFE & HUD-1/1A Charges Comparison Chart |
|||||
|
Good Faith Estimate |
HUD-1/1A |
$ Increase |
||
Charges Cannot Increase |
|
|
|
||
Our service charge (HUD-1/1A Line #801) |
$6,000.00 |
$6,000.00 |
0 |
||
Your credit or charge for the specific interest rate chosen (HUD-1/1A Line #802) |
-$4,000.00 |
-$4,000.00 |
0 |
||
Your Adjusted Origination Charges (HUD-1/1A Line #803) |
$2,000.00 |
$2,000.00 |
0 |
||
Government recording and transfer charges (HUD-1/1A Line #1201) |
$1,250.00 |
$1,250.00 |
0 |
||
|
|
|
|
|
|
Charges Cannot Increase More Than 10% |
|
|
|||
Appraisal (HUD-1/1A Line #804) |
$295.00 |
$325.00 |
|
||
Credit Report (HUD-1/1A Line #805) |
$21.00 |
$21.00 |
|
||
Tax service (HUD-1/1A Line #806) |
$70.00 |
$75.00 |
|
||
Flood certification (HUD-1/1A Line #807) |
$12.00 |
$15.00 |
|
||
Mortgage Insurance Premium (HUD-1/1A Line #902) |
|
|
|
||
Title services and lender’s title insurance _ (HUD-1/1A Line #1101 ) |
$975.00 |
$975.00 |
|
||
Optional owner’s title insurance _______ (HUD-1/1A Line #1110 ) |
$679.00 |
$725.00 |
|
||
__________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||
|
|
Total |
$2052.00 |
$2136.00 |
+84 |
*Increase between GFE and HUD-1/1A Charges |
4% |
||||
|
|
|
|
|
|
Charges Can Change |
|
|
|||
Reserves or escrow (HUD-1/1A Line #1001) |
$262.00 |
$262.00 |
|
||
Daily interest charges (HUD-1/1A Line #901) $53.42 per day |
$213.69 |
$427.36 |
|
||
Homeowners insurance (HUD-1/1A Line #903) |
$600.00 |
$615.00 |
|
||
Survey (HUD-1/1A Line #1301 ) |
$150.00 |
$150.00 |
|
||
Pest inspection (HUD-1/1A Line #1302 ) |
$35.00 |
$35.00 |
|
||
__________________ (HUD-1/1A Line #____ ) |
|
|
|
||
Acknowledgment
The undersigned hereby state that the Closing Script was read and the following information was provided and explained:
The comparison between the charges listed on the HUD-1/1A settlement form and the estimate of charges on the GFE;
Whether or not the tolerances have been met within the applicable categories between the GFE and the HUD-1/1A; and
Any inconsistencies between the loan documents (including the mortgage note) and the summary of the loan terms on the GFE, and between the HUD-1/1A settlement charges and the charges stated on the GFE.
__________________ (Representative) ___________________ (Company)
__________________ (Borrower) ___________________(Borrower)
__________________ (Date)
Example 5 – Fixed Interest Rate with Balloon Payment
THESE ARE YOUR LOAN DETAILS
The following is a summary of many important details involving the mortgage loan for 123 Main Street, Hometown, USA 00000. Let’s compare these important details with the Good Faith Estimate (GFE), loan documents, and other disclosures.
Loan Amount
$300,000.00 |
Loan Term
15 year |
Loan Type
Conventional Fixed Rate Interest Only Balloon |
Fixed Interest Rate
Your loan has a fixed interest rate of 7.5%.
A fixed interest rate means that your interest rate will not rise over the life of the loan.
Payment - Interest-Only Mortgage
Your loan payment for interest ($1,875.00) and mortgage insurance ($62.00) is $1,937.00 and cannot rise. This will not reduce the principal balance of your loan.
You have an escrow account. In addition to any mortgage insurance, your initial escrow payment is $200.00 for property taxes and homeowners insurance. This amount may increase.
Your total payment is $2,137.00 for interest, any mortgage insurance, property taxes and homeowners insurance.
Late Payment
Your loan payment is due on the 1st of every month and is considered late after the 15th of every month. If your lender receives your mortgage payment after the 15th, your lender will charge a late fee of 5% of the overdue payment of principal and interest.
Loan Balance
Your loan balance cannot rise.
Prepayment Penalty
You have a pre-payment penalty.
A prepayment penalty is an additional amount that you will be required to pay if you pay your loan off early such as through the sale of your home, refinancing your loan, or if you make significant additional payments to principal prior to June 1, 2010. Based on your initial loan amount, your prepayment penalty may be as high as $9,400.00.
Balloon Loan
Your loan has a balloon payment. At the end of the loan term, any balance remaining will have to be paid. In the case of a balloon loan, often very little, if any, of the loan balance is paid down, therefore, the last payment, the balloon payment can be most of the initial loan balance. Most consumers with a balloon note refinance their loan before the final balloon payment becomes due.
Your balloon payment will become due on April 1, 2023 in the amount of $300,000.00.
Closing Costs
Next we will review all of the HUD-1/1A charges and credits associated with your loan and compare them to the GFE you received when you applied for this loan.
GFE & HUD-1/1A Charges Comparison Chart |
|||||||
|
Good Faith Estimate |
HUD-1/1A |
$ Increase |
||||
Charges Cannot Increase |
|
|
|
||||
Our service charge (HUD-1/1A Line #801) |
$6,000.00 |
$6,000.00 |
0 |
||||
Your credit or charge for the specific interest rate chosen (HUD-1/1A Line #802) |
-$4,000.00 |
-$4,000.00 |
0 |
||||
Your Adjusted Origination Charges (HUD-1/1A Line #803) |
$2,000.00 |
$2,000.00 |
0 |
||||
Government recording and transfer charges (HUD-1/1A Line #1201) |
$1,250.00 |
$1,250.00 |
0 |
||||
|
|
|
|
|
|||
Charges Cannot Increase More Than 10% |
|
|
|||||
Appraisal (HUD-1/1A Line #804) |
$300.00 |
$300.00 |
|
||||
Credit Report (HUD-1/1A Line #805) |
$40.00 |
$45.00 |
|
||||
Tax service (HUD-1/1A Line #806) |
$70.00 |
$92.00 |
|
||||
Flood certification (HUD-1/1A Line #807) |
$12.00 |
$15.00 |
|
||||
Mortgage Insurance Premium (HUD-1/1A Line #902) |
$62.00 |
$62.00 |
|
||||
Title services and lender’s title insurance (HUD-1/1A Line #1101 ) |
$975.00 |
$1015.00 |
|
||||
Optional owner’s title insurance_______ (HUD-1/1A Line #1110 ) |
$725.00 |
$775.00 |
|
||||
________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||||
|
|
Total |
$2184.00 |
$2304.00 |
+120 |
||
*Increase between GFE and HUD-1/1A Charges |
5% |
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Charges Can Change |
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Reserves or escrow (HUD-1/1A Line #1001) |
$262.00 |
$262.00 |
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Daily interest charges (HUD-1/1A Line #901) $53.42 per day |
$213.69 |
$427.36 |
|
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Homeowners insurance (HUD-1/1A Line #903) |
$600.00 |
$600.00 |
|
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Survey (HUD-1/1A Line #1301 ) |
$175.00 |
$175.00 |
|
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Pest Inspection (HUD-1/1A Line #1302 ) |
$45.00 |
$45.00 |
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__________________ (HUD-1/1A Line #____ ) |
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Acknowledgment
The undersigned hereby state that the Closing Script was read and the following information was provided and explained:
The comparison between the charges listed on the HUD-1/1A settlement form and the estimate of charges on the GFE;
Whether or not the tolerances have been met within the applicable categories between the GFE and the HUD-1/1A; and
Any inconsistencies between the loan documents (including the mortgage note) and the summary of the loan terms on the GFE, and between the HUD-1/1A settlement charges and the charges stated on the GFE.
__________________ (Representative) ___________________ (Company)
__________________ (Borrower) ___________________(Borrower)
__________________ (Date)
Example 6 –Fixed Interest Rate with Balloon Payment
THESE ARE YOUR LOAN DETAILS
The following is a summary of many important details involving the mortgage loan for 123 Main Street, Hometown, USA 00000. Let’s compare these important details with the Good Faith Estimate (GFE), loan documents, and other disclosures.
Loan Amount
$30,000.00 |
Loan Term
15 year |
Loan Type
Conventional Fixed Rate Balloon |
Fixed Interest Rate
Your loan has a fixed interest rate of 8.0%.
A fixed interest rate means that your interest rate will not rise over the life of the loan.
Payment
Your loan payment for principal and interest ($220.13) and mortgage insurance ($0 ) is $220.13 and cannot rise.
You do not have an escrow account. Any and all items such as property taxes and homeowners insurance must be paid directly by you.
Your total payment is $220.13 for principal, interest, and any mortgage insurance.
Late Payment
Your loan payment is due on the 1st of every month and is considered late after the 15th of every month. If your lender receives your mortgage payment after the 15th, your lender will charge a late fee of 5% of the overdue payment of principal and interest.
Loan Balance
Your loan balance cannot rise.
Prepayment Penalty
You do not have a pre-payment penalty.
Balloon Loan
Your loan has a balloon payment. At the end of the loan term, any balance remaining will have to be paid. In the case of a balloon loan, often very little, if any, of the loan balance is paid down, therefore, the last payment, the balloon payment can be most of the initial loan balance. Most consumers with a balloon note refinance their loan before the final balloon payment becomes due.
Your balloon payment will become due on April 1, 2022 in the amount of $23,254.44.
Closing Costs
Next we will review all of the HUD-1/1A charges and credits associated with your loan and compare them to the GFE you received when you applied for this loan.
GFE & HUD-1/1A Charges Comparison Chart |
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|
Good Faith Estimate |
HUD-1/1A |
$ Increase |
||
Charges Cannot Increase |
|
|
|
||
Our service charge (HUD-1/1A Line #801) |
$2,700.00 |
$2,700.00 |
0 |
||
Your credit or charge for the specific interest rate chosen (HUD-1/1A Line #802) |
-$750.00 |
-$750.00 |
0 |
||
Your Adjusted Origination Charges (HUD-1/1A Line #803) |
$1,950.00 |
$1,950.00 |
0 |
||
Government recording and transfer charges (HUD-1/1A Line #1201) |
$1,250.00 |
$1,250.00 |
0 |
||
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Charges Cannot Increase More Than 10% |
|
|
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Appraisal (HUD-1/1A Line #804) |
$300.00 |
$325.00 |
|
||
Credit Report (HUD-1/1A Line #805) |
$22.00 |
$18.00 |
|
||
Tax service (HUD-1/1A Line #806) |
$60.00 |
$78.00 |
|
||
Flood certification (HUD-1/1A Line #807) |
$12.00 |
$15.00 |
|
||
Mortgage Insurance Premium (HUD-1/1A Line #902) |
|
|
|
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Title services and lender’s title insurance (HUD-1/1A Line #1101) |
$415.00 |
$469.00 |
|
||
_________________________________ (HUD-1/1A Line #____ ) |
|
|
|
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_________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||
|
|
Total |
$809.00 |
$905.00 |
+96 |
*Increase between GFE and HUD-1/1A Charges |
12% |
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|
|
|
Charges Can Change |
|
|
|||
Reserves or escrow (HUD-1/1A Line #1001) |
|
|
|
||
Daily interest charges (HUD-1/1A Line #901) $7.24 per day |
$28.96 |
$57.92 |
|
||
Homeowners insurance (HUD-1/1A Line #903) |
$600.00 |
$600.00 |
|
||
________________________________ (HUD-1/1A Line #____ ) |
|
|
|
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________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||
________________________________ (HUD-1/1A Line #____ ) |
|
|
|
||
Acknowledgment
The undersigned hereby state that the Closing Script was read and the following information was provided and explained:
The comparison between the charges listed on the HUD-1/1A settlement form and the estimate of charges on the GFE;
Whether or not the tolerances have been met within the applicable categories between the GFE and the HUD-1/1A; and
Any inconsistencies between the loan documents (including the mortgage note) and the summary of the loan terms on the GFE, and between the HUD-1/1A settlement charges and the charges stated on the GFE.
__________________ (Representative) ___________________ (Company)
__________________ (Borrower) ___________________(Borrower)
__________________ (Date)
| File Type | application/msword |
| File Title | DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT |
| Author | h09992 |
| Last Modified By | h09992 |
| File Modified | 2008-02-27 |
| File Created | 2008-02-27 |