Cindy Schweikert Hart West Financial Inc. Home Mortgages in Arizona, Washington, Oregon, Colorado, New Mexico and Utah

Serving Homeowners, Home Buyers, Home Sellers in Arizona, Washington, Oregon, Colorado, New Mexico and Utah

  • Home
  • About
    • About Us
    • Testimonials
    • Privacy Policy
    • Site Security
  • Hartwest.com
    • Daily Morgage Commentary
    • Request Estimate Of Closing Costs
  • Mortgage Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
  • Apply Today – Click Here
  • Blog
  • Video Library
  • Contact

Hart West Financial March 24, 2016

How the Truth in Lending Act Protects You When You Take Out a Mortgage

How the Truth in Lending Act Protects You When You Take Out a MortgageIf you’re planning to get a mortgage, it’s critical that you know your rights under the law. The Truth in Lending Act (TILA) is a piece of federal legislation that governs how mortgage lenders can and cannot operate their businesses.

So how does the Truth in Lending Act protect you, and what are your rights under this legislation? Here’s what you need to know.

Your Lender Must Give You A Timely Loan Estimate

A Loan Estimate (previously known as a Good Faith Estimate) is a document your lender provides you that details information about what kind of a mortgage you’ve applied for. Your Loan Estimate includes terms such as your estimated monthly payment, your estimated interest rate, and whether or not your mortgage balance is able to rise even if you make payments.

Under the Truth in Lending Act, your lender is obligated to give you a good-faith Loan Estimate within three days of when you apply for your mortgage. If your lender fails to provide your Loan Estimate within three days or fails to fix reported errors within 60 days, you can sue for damages and report the lender to the federal government.

Your Lender Must Notify You Of Rate Changes

The Truth in Lending Act states that your mortgage lender is required to give you an annual percentage rate estimate within 1/8 of one percent of government guidelines. Your lender must use the government-approved mathematical formula to provide your rate estimate.

If your estimated rate may be subject to change, your lender is obligated to disclose the first possible change you’ll see to your interest rate, and the maximum degree to which it may change. Your lender is also required to disclose the maximum possible changes for subsequent rate adjustments.

There Are Strict Rules About How And When Lenders Can Charge Late Fees

If your lender typically administers fees for late payments, TILA will specify that your lender must notify you – in advance – the date on which a late fee will be imposed and how much the late fee will be. TILA states that no late fee can exceed 4 percent of the amount past due, and a payment is only considered late if it is 15 or more days past due (or 30 or more days past due if you prepaid your interest). Your lender also cannot charge you a late fee on top of a late fee.

TILA is a powerful consumer protection law that gives would-be homeowners a great deal of power. By knowing your rights under TILA, you’ll be able to confidently negotiate with lenders and avoid any unnecessary problems. Contact your local mortgage professional to learn more.

Filed Under: Home Buyer Tips Tagged With: Home Buyer Tips, Mortgage Tips, The Truth In Lending Act

[easingsliderpro id="1"]

About Hart West Financial

Hart West Financial is a home mortgage firm licensed in Arizona, Colorado, New Mexico, Oregon, Utah, and Washington. They take pride in offering top-quality service and providing very competitive pricing due to their non-commission loan officer based business model. Call Hart West Financial today at 800-910-1937 to get your home loan approved today!

Connect with Us on:
Manta
Click Here For License List

Get A Free Rate Quote!

  • This field is for validation purposes and should be left unchanged.



Quick Links

  • NMLS Consumer Access
  • Accessibility Statement
  • Video Library
  • Mortgage Licenses
  • Contact Us
  • Privacy Policy
Hart West Financial, Inc.
9805 E Bell Rd. Ste 120
Scottsdale Road, AZ 85260
NMLS #116830
AZ MB 0901832; CO 100008133; NM 01938; OR ML-2751; UT 5491769NMLC; WA MB-116830
Cindy Schweikert Loan Originator NMLS #116611
EQ Logo

Our Location


9805 E Bell Rd. #120
Scottsdale, AZ 85260

Return to top of page

Copyright © 2023 Cindy Schweikert Hart West Financial Inc. Home Mortgages in Arizona, Washington, Oregon, Colorado, New Mexico and Utah. All rights reserved.   Log In