interest rate can increase the first time it adjusts after the fixed- rate period expires. It’s common for this cap to be either two or five percent – meaning that at the first time that the rate changes, the new rate can’t be more than two (or five) percentage points higher than the initial rate during the fixed- rate period. Intent to Proceed The "intent to proceed" is evidence that you are interested in obtaining a loan from that particular lender. It does not commit the prospective buyer to get a loan from that lender. It simply states that you have signaled intent to proceed with the lender’s loan process under the terms described in the loan estimate. Lenders Title Insurance Lender’s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender’s title insurance only protects the lender against problems with the title. To protect yourself, you may want to purchase owner’s title insurance. Loan Estimate A Loan Estimate (LE) is a three-page form that you will receive from the lender within three business days of applying for a mortgage. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The LE also shows the estimated costs of property taxes and insurance, and how the interest rate and payments may change in the future. It explains which charges can change before settlement (closing) and which charges must remain the same. Loan Modification Modifications may involve extending the number of years you have to repay the loan, reducing your interest rate, and/or forbearing or reducing your principal balance.
70
Powered by FlippingBook