Whenever a shopper is quoted a monthly payment, he must also be shown the highest monthly payment possible on that loan, and the month it would be reached, assuming the borrower always makes the minimum payment allowed.
This is a really good home
loan shopping guideline for all homebuyers, especially those who may be quoted a low start rate. There are many required disclosures, including an
APR, the annual percentage rate which are your
loan fees and costs which are supposed to show the true cost of your loan, but not always so! The APR is a complex calculation which may vary from loan to loan even with the same lender; ask for a
good faith estimate which should look like this 2005 sample from the California Department of Real Estate. Buyers, if you're serious about shopping for a new home, you should be serious about taking the time to look into what you need in a loan and a lender!
Long Beach
