Monday, January 21, 2013

New Mortgage Disclosures Can Help Borrowers Save

If you’re buying a new home or refinancing your current mortgage in the next few months, you’re going to see a new mortgage disclosure form.  The new, easy-to-to understand closing form from will disclose virtually every cost involved in taking out a mortgage or buying a home.  The new form will show costs ranging from property taxes to closing costs required at settlement.

For the first time, mortgage transaction costs will be listed in a single disclosure for easier comprehension.  Lenders are required to provide estimates not only for costs they will charge borrowers, but also estimates for services provided by third parties like title insurance and settlement fees.  These are called “good faith estimates” because the final cost charged to borrowers cannot exceed the lender’s good faith estimates by more than 10 percent or lenders are liable to pay the difference.

Lenders must provide a borrower a good faith estimates within three days of receiving his or her application for a mortgage.  Knowing all closing costs well in advance of settlement ensures there are no unpleasant surprises at the settlement table, which is why the Consumer Protection Finance Bureau calls the new forms “know before you owe”.  However the new form for closing services, called a Loan Estimate, does more than keep borrowers informed.  It also actually empowers borrowers to save money on closing costs— as much as several thousand dollars—by shopping for services on their own to find costs below their lenders’ good faith estimates.

There are only a limited number of mortgage services that a borrower has control over, but shopping for the best rates can still result in significant savings.  All the costs are clearly shown on the Loan Estimate form, which separates the costs the borrower will pay for the loan into several categories: Origination Charges, Services You Cannot Shop For, and Services You Can Shop For.

Some of the services that borrowers have no control over are provided by third parties and ordered by lenders.  These include the costs of appraisals and credit reports.  Lenders are now required to provide borrowers a copy of the appraisal, but the borrower has no say over which appraiser to use and how much the appraisal will cost.

Two costs that borrowers control are title insurance and settlement fees.  Shopping the quotes for these services can result in significant savings.  Costs charged by title insurers and settlement providers can vary by several thousand dollars.  Estimated charges and terms must be good for at least ten business days from the time the GFE is provided to give the borrower a chance to compare other vendors.  In some cases, a borrower may decide that he will use the lender’s provider, and should notify the lender within the ten day time period in order to lock in the estimate.

Lenders are only required to provide good faith estimates for closing services that are required for the loan.  Borrowers may incur other costs in the closing process.  At the time of closing, they are listed as Other Costs on the Closing Disclosure form, which is another new disclosure form that will be in use soon.  These optional closing services include home inspection, surveys, mold inspection, HOA dues, home warranty, and radon inspection.

In 2012 Bankrate found that the average cost to close on a $200,000 mortgage in the United States is $3,754, down from $4,070 in 2011 and about the same as $3,741 in 2010, when good faith estimates took effect.  By doing a good job of using the new form to shop for services where possible, borrowers can reduce the cash they will need to spend at closing.

There was the three-person film crew behind and on the side of him, recording every swing that the Hunterdon Central senior took. On the far side of the cage sat three of Russomagno's teammates from the Diamond Nation Super 17 team, as well as their parents.  A few Diamond Nation executives came and went to check in on the progress.

"I've heard from guys who have had a lot of time in the major leagues, guys who have a lot of experience in the game but nothing like Kevin," said Russomagno, a Yankee fan who has committed to playing baseball at the U.S. Naval Academy next year. "He's working with us, and then after us, it's (Robinson) Cano or (Derek) Jeter. It's really cool to see how he translates the information he gives them to us."

Long was in Flemington this past weekend to film segments for Club Diamond Nation, an interactive website for baseball players, parents and coaches. After Saturday's filming was completed, Long held a pair of hitting clinics, one for 10-12- year-olds and another for 13-18-year-olds.

Just because Long works most often with hitters like Cano or Alex Rodriguez, he does not try to mold young hitters after any Yankee.

"There's so many different styles to hitting and I think it's unfair to teach everyone like Cano or everybody like A-Rod or Jeter," he said. "They are all very unique in their styles and what they do. What I like to do is work within a kid's scheme."

Players at Long's clinics may not get taught how to hit like their favorite Yankee, but they will get a lot of the same drills that Long uses with Yankee players.

"I don't vary too much," Long said. "Maybe a little more thorough on how to execute the drill (with the younger players), but we do a lot of tee work, we do a lot of flips, over-hand toss, (batting practice). But basically the same drills I use on an every-day basis with the Major League guys, I'm using those drills with our young kids."

At Saturday's clinic for the younger players, Long started with the basics of how to properly hold a bat and get into a good batting stance. For older players, Long said he would get more into the mental approach to hitting, as well as working on the more finite skills of hitting.

In Long's six years as Yankees hitting coach, New York has led the majors in runs scored three times and nearly finished on top of that category again last year, falling four runs shy of Texas' 808.

At the end of last year, he wasn't the most popular of Yankee coaches after the team's offensive struggles in the playoffs against Detroit. But come Feb. 10, Long will be in Tampa, Fla., to start spring training and said that he hoped the players have moved on from last year's disappointment.

"It was a tough pill to swallow, but this is a new year," Long said. "You have to move forward and I think they've all had their talks with themselves and maybe what they can do better."

Despite the losses of a couple of outfielders and catcher Russell Martin, the majority of the Yankee team remains the same from last year. The only major free-agent signing for the Yankees was infielder Kevin Youkilis, who will help fill-in while Rodriguez recovers from hip surgery.  The Yankees will also look for one of three in-house options to fill Martin's void.

All of that consistency in the lineup has helped Long because he gets to know each player's swing. It also helps cut down on his off-season travel, since he does not have to go visit each player.

"I'll be in touch with them and have contact with them," Long said. "Some guys will utilize me a little bit more as far as what they need to do in their off-season program. But I'm not traveling all across the country."

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