Truth In Mortgages What you don’t know can hurt you! Mike Mueller Sr. Loan Officer / Manager

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Truth In MortgagesTruth In MortgagesWhat you don’t know What you don’t know cancan hurt you!hurt you!

Mike MuellerMike Mueller

Sr. Loan Officer / ManagerSr. Loan Officer / Manager



Managing Your Mortgage: Managing Your Mortgage: “Truth in Mortgages”“Truth in Mortgages”

How “How “theythey” lie to you” lie to you

Why “Why “theythey” lie to you” lie to you

What you need to knowWhat you need to know

How to protect yourself in the futureHow to protect yourself in the future



How “How “theythey” lie to you” lie to you

The “Good Faith Estimate”The “Good Faith Estimate”

The “Truth in Lending”The “Truth in Lending”

Bait and Switch TacticsBait and Switch Tactics

Locks and LoansLocks and Loans



““The Good Faith Estimate”The Good Faith Estimate”

Required by the Feds under RESPARequired by the Feds under RESPA

Within 3 days of applicationWithin 3 days of application

Contains the fees of up to 17 different outside partiesContains the fees of up to 17 different outside parties

It doesn’t have to be correct !It doesn’t have to be correct !



““The Good Faith Estimate”The Good Faith Estimate”











““The Truth in Lending Statement”The Truth in Lending Statement”

Once again, required by the FedsOnce again, required by the Feds

Sometimes called the Reg. ZSometimes called the Reg. Z

Contains the A.P.R.Contains the A.P.R.

It doesn’t have to be correct either!It doesn’t have to be correct either!










Computing APR is easyComputing APR is easy

1.1. The loan value The loan value (L/A, or FV)(L/A, or FV)

2.2. The term The term (n)(n)

3.3. The interest The interest (i)(i)

4.4. Solve for PMTSolve for PMT

5.5. Then subtract costs from L/AThen subtract costs from L/A

6.6. Solve for interestSolve for interest




LA = Loan Amount ($400,000)LA = Loan Amount ($400,000)n = Term (30 years)n = Term (30 years)i = Interest Rate (6.75%)i = Interest Rate (6.75%)Solve for Payment =$2,594Solve for Payment =$2,594Subtract the costs of 8,409 from the Subtract the costs of 8,409 from the

original $400,000 and enter that into original $400,000 and enter that into L/AL/A

Solve for InterestSolve for Interest = 6.96 %= 6.96 %




6.96% doesn’t equal 6.93%6.96% doesn’t equal 6.93%



Valuable ResourcesValuable Resources

Trusted Advisors and ProfessionalsTrusted Advisors and Professionals

PatagoniaFinance.comPatagoniaFinance.com “ “Mike’s Mortgage Minute”Mike’s Mortgage Minute”



Valuable ResourcesValuable ResourcesMike’s Mortgage MinuteMike’s Mortgage Minute















Mike MuellerMike Mueller

[email protected]@PatagoniaFinance.com

[email protected]@BayAreaLoanSource.com

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925 288-9977

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Truth In Mortgages What you don’t know can hurt you! Mike Mueller Sr. Loan Officer / Manager