Unmoderated Usability Testing of the Mortgage Closing Product

OMB Approval No. 2502-0265

Good Faith Estimate (GFE)
Joe Banks

Name of Originator

Bank 1
1299 U Street NW
Washington DC 20002
Originator Phone Number XXX-XXX-XXX

Borrower

Originator
Address

Property
Address

Originator Email

Date of GFE

[email protected]

7809 Old Georgetown Road
Bethesda, MD 20814
06/02/14

This GFE gives you an estimate of your settlement charges and loan terms if you are approved for
this loan. For more information, see HUD’s Special Information Booklet on settlement charges, your
Truth-in-Lending Disclosures, and other consumer information at www.hud.gov/respa. If you decide
you would like to proceed with this loan, contact us.

Shopping for
your loan

Only you can shop for the best loan for you. Compare this GFE with other loan offers, so you can find
the best loan. Use the shopping chart on page 3 to compare all the offers you receive.

Important dates

1. The interest rate for this GFE is available through 06/02/14
. After this time, the
interest rate, some of your loan Origination Charges, and the monthly payment shown below can
change until you lock your interest rate.

at

a

Purpose

2. This estimate for all other settlement charges is available through

.

06/13/14

D

3. After you lock your interest rate, you must go to settlement within 30 days (your rate lock period)
to receive the locked interest rate.
4. You must lock the interest rate at least 25 days before settlement.
$ 240,000.00

Your loan term is

15

e

Your initial loan amount is

m
pl

Summary of
your loan

4.25

Your initial interest rate is

1,805.47
$

Can your interest rate rise?

c
x No c Yes, it can rise to a maximum of
The first change will be in

Sa
Summary of your
settlement charges

%

Your initial monthly amount owed for principal,
interest, and any mortgage insurance is

per month

Even if you make payments on time, can your
loan balance rise?

c
x No c Yes, it can rise to a maximum of $

Even if you make payments on time, can your
monthly amount owed for principal, interest,
and any mortgage insurance rise?

x No c
c

Does your loan have a prepayment penalty?

x No c Yes, your maximum prepayment
c
penalty is $

Does your loan have a balloon payment?

Escrow account
information

years

%.
.

Yes, the first increase can be in
and the monthly amount owed can
rise to $
. The maximum it
can ever rise to is $
.
.

x No c Yes, you have a balloon payment of
c
$
due in
years.

Some lenders require an escrow account to hold funds for paying property taxes or other propertyrelated charges in addition to your monthly amount owed of $ 1,805.47 .
Do we require you to have an escrow account for your loan?
c
X No, you do not have an escrow account. You must pay these charges directly when due.
c Yes, you have an escrow account. It may or may not cover all of these charges. Ask us.

A Your Adjusted Origination Charges (See page 2.)
B Your Charges for All Other Settlement Services (See page 2.)
A + B Total Estimated Settlement Charges

$

3,940.00

$

6,737.95

$ 10,677.95
Good Faith Estimate (HUD-GFE) 1

Understanding
your estimated
settlement charges

Your Adjusted Origination Charges
1. Our origination charge
This charge is for getting this loan for you.

$7,540.00

2. Your credit or charge (points) for the specific interest rate chosen
c The credit or charge for the interest rate of
% is included in
“Our origination charge.” (See item 1 above.)
c
X You receive a credit of $ 3,600.00 for this interest rate of
%.
This credit reduces your settlement charges.
c You pay a charge of $
for this interest rate of
%.
This charge (points) increases your total settlement charges.
The tradeoff table on page 3 shows that you can change your total
settlement charges by choosing a different interest rate for this loan.

$3,600.00

A

Your Adjusted Origination Charges

$

3,940.00

Your Charges for All Other Settlement Services
3. Required services that we select
These charges are for services we require to complete your settlement.
We will choose the providers of these services.
Service
Charge

Credit Report
Flood Certificate Fee
Review Appraisal

25.00
8.00
200.00

a

$233.00

4. Title services and lender’s title insurance
This charge includes the services of a title or settlement agent, for
example, and title insurance to protect the lender, if required.

$1,035.00

5. Owner’s title insurance
You may purchase an owner’s title insurance policy to protect your interest
in the property.

$100.00

D

at

Some of these charges
can change at settlement.
See the top of page 3 for
more information.

e

6. Required services that you can shop for
These charges are for other services that are required to complete your
settlement. We can identify providers of these services or you can shop
for them yourself. Our estimates for providing these services are below.
Service
Charge

m
pl

$0.00

7. Government recording charges
These charges are for state and local fees to record your loan and
title documents.

Sa

$175.00

8. Transfer taxes
These charges are for state and local fees on mortgages and home sales.

$3,930.00

9. Initial deposit for your escrow account
This charge is held in an escrow account to pay future recurring charges
on your property and includes c all property taxes, c all insurance,
and c other
.

$0.00

10. Daily interest charges
This charge is for the daily interest on your loan from the day of your
settlement until the first day of the next month or the first day of your
normal mortgage payment cycle. This amount is $ 15.90
per day
for 31 days (if your settlement is 240,000
).

$424.95

11. Homeowner’s insurance
This charge is for the insurance you must buy for the property to protect
from a loss, such as fire.
Policy
Charge

Homeowner's Insurance

$840.00

$840.00

B Your Charges for All Other Settlement Services
A + B Total Estimated Settlement Charges

$

6,737.95

$ 10,677.95

Good Faith Estimate (HUD-GFE) 2

Instructions
Understanding
which charges
can change at
settlement

This GFE estimates your settlement charges. At your settlement, you will receive a HUD-1, a form that lists your
actual costs. Compare the charges on the HUD-1 with the charges on this GFE. Charges can change if you select your
own provider and do not use the companies we identify. (See below for details.)
These charges
cannot increase
at settlement:
g

g

g

g

Our origination charge

g

Your credit or charge (points) for the
specific interest rate chosen (after
you lock in your interest rate)
Your adjusted origination charges
(after you lock in your interest rate)

g

g

Required services that we select

g

Title services and lender’s title
insurance (if we select them or
you use companies we identify)

g

Owner’s title insurance (if you use
companies we identify)
g

Transfer taxes

g

g

Using the
tradeoff table

These charges
can change
at settlement:

The total of these charges
can increase up to 10%
at settlement:

Required services that you can
shop for (if you use companies we
identify)

g

Government recording charges

Required services that you can shop
for (if you do not use companies we
identify)
Title services and lender’s title
insurance (if you do not use
companies we identify)
Owner’s title insurance (if you do not
use companies we identify)
Initial deposit for your escrow
account

g

Daily interest charges

g

Homeowner’s insurance

In this GFE, we offered you this loan with a particular interest rate and estimated settlement charges. However:
g

g

If you want to choose this same loan with lower settlement charges, then you will have a higher interest rate.
If you want to choose this same loan with a lower interest rate, then you will have higher settlement charges.

a

If you would like to choose an available option, you must ask us for a new GFE.
Loan originators have the option to complete this table. Please ask for additional information if the table is not completed.
The same loan with
The same loan with a
lower settlement charges lower interest rate

Your initial loan amount

$

$

Your initial interest rate

Your initial monthly amount owed

240,000.00

D

1

at

The loan in this GFE

4.25
$ 1,850.47
No change

Change in the amount you will pay at
settlement with this interest rate

No change

How much your total estimated settlement
charges will be

$

1

10,677.95

%

$

$

You will pay $
more every month

You will pay $
less every month

%

Your settlement charges Your settlement
charges will increase by
will be reduced by
$
$
$

$

For an adjustable rate loan, the comparisons above are for the initial interest rate before adjustments are made.

Use this chart to compare GFEs from different loan originators. Fill in the information by using a different column
for each GFE you receive. By comparing loan offers, you can shop for the best loan.

Sa

Using the
shopping chart

m
pl

e

Change in the monthly amount owed from
this GFE

%

$

This loan

Loan 2

Loan 3

Loan 4

Loan originator name
Initial loan amount
Loan term
Initial interest rate

Initial monthly amount owed
Rate lock period
Can interest rate rise?
Can loan balance rise?
Can monthly amount owed rise?
Prepayment penalty?
Balloon payment?

Total Estimated Settlement Charges

If your loan is
sold in the future

Some lenders may sell your loan after settlement. Any fees lenders receive in the future cannot change the loan
you receive or the charges you paid at settlement.

Good Faith Estimate (HUD-GFE) 3