Mortgage Loan Disclosure: Page 4 Details

Page 4 of the Loan Disclosure is NOT just standardized same-for-every-loan boilerplate.  Review Page 4 on your disclosure carefully, including these terms:

  • Partial Payments — what policies does the lender provide?
  • Late Payments — what penalties apply, after what period of time?
  • Negative Amortization — are payments that do not fully cover the interest due allowed? Do they result in increased loan principal?
  • Early Repayment, or “Demand”.  Can the lender require earlier repayment than originally scheduled?
  • Assumable/Assumption:  If you sell or transfer the property, can the loan also be transferred?
  • Escrow Account details — study these to be clear on which costs are covered, and which are not.

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