Several years ago the U.S. Congress tried to protect consumers from a few unscrupulous lenders by requiring all lenders to calculate and disclose the annual percentage rate (APR) you pay on your mortgage loan. But most homebuyers will learn more by directing their attention to the Good Faith Estimate of Settlement Costs (GFE). Although Congress meant well, in practice the APR is not helpful and may be confusing.

If you are looking for a good way to understand your costs of borrowing and/or to compare one lender's costs to another, the GFE is your best bet. Get your lender(s) to provide a written GFE before you commit your mortgage business. When reviewing a GFE, keep in mind that the lender actually controls only a certain portion of the disclosed costs. Other parties typically control costs of appraisal, settlement, title insurance, recording fees and taxes, survey, and the "prepaid" expenses of homeowner's insurance, mortgage insurance, real estate taxes, etc. Review these origination fees, discount points, etc. and you will have the ability to understand the full costs of your proposed mortgage loan.

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Karl Volkman
Coldwell Banker The Real Estate Group
1050 North Lynndale Drive
Appleton, WI 54914
Tel: 920-993-7311
Fax: 920-968-1167
Email: karl@karlvolkman.com

Get to know Karl and you'll soon discover a common thread in all he does. Whether it's in his successful career or his time spent with loved ones, Karl always gives 100 percent of his dedication and enthusiasm. For him, it's simple: when you give your best to what you do, you get more back than you could ever imagine. As the #1 Coldwell Banker Agent in the state of Wisconsin for the 7th consecutive year and #1 Agent for Coldwell Banker-The Real Estate Group for the 7th consecutive year, Karl's 3 decades in the industry, in-depth market knowledge and attention to detail enable him to make your move an enjoyable and successful one. Karl understands what an important time this is in your life. So, when you work with Karl, you can count on his full energy and attention to help you realize your dreams.

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