Good Faith Estimate video. This is the new Good Faith Estimate (GFE) that want into effect 1/1/10. The idea according to the Government is that it provides more information to the consumer and lessens the likelyhood of fraud by the lender.
Yes, it's good because the terms are clearly spelled out - interest rate, loan term, prepayment penalty, etc. Settlement charges, transfer taxes, homeowner's insurance, etc. again, clearly spelled out.
At the bottom of page #1, #2, and #3 you have "Total Estimated Settlement Charges" of that equals a specific $ amount. Again, very clear.
Here's my problem: What is the downpayment? Where is the downpayment listed? Can you find it? I'll bet you can't. Why? Because, it's not listed. They just made it more confusing by telling the Borrower a not so complete "Total".
Mortgage Terms
Ballon Mortgage - A mortgage note with an amortization schedule that does not extinguish the debt by the of the term. A large (balloon) payment of the remaining balance is required at the end of the term.
CAPS - Interest Caps: A limit on the amount the interest rate on an adjustable rate mortgage can change per adjustment and/or over the life of the loan. Payment Caps: A limit on the amount the monthly "principal and interest" payment can change, per adjustment.