The Consumer Financial Protection Bureau (CFPB) announced the drafting of two proposals for a combined RESPA/TILA Disclosure form and asked for feedback. The CFPB indicates that this is one of the first steps in combining the Truth in Lending form and the Good Faith Estimate into a single, simpler disclosure form. Check out http://www.consumerfinance.gov/know-before-you-owe-go/ Let them know what your opinion is.
How Can a Bi-Weekly Loan Program Help You?
Q. I want to refinance my home for a shorter term. Could you explain the benefits of a Bi-weekly loan?
A. A bi-weekly loan is a great option for reducing the term of your mortgage. The basic premise of the loan is the more often you make payments the faster your principal decreases making your interest payments less over the term of the loan. The Bi-weekly payment plan is set up to have you make 26 Bi-weekly payments as opposed to 12 month installments. A thirty-year loan would be paid off in 23 years or less and a 15 year loan would be paid off in about 13 years. With so many employers switching to bi-weekly periods, it makes financial planning simple. Check with your loan officer to see if this option is available to you.
If your lender does not have a specific Bi-weekly program you can usually accomplish the same goal by making one extra payment per year. Simply take your monthly principal payment, divide it by 12 and add that amount to your normal monthly payment.
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