Page 26 - Book6E

18
Home Equity Loans
• Blank copies of the forms you’ll be required to sign at closing. This is so you can read them carefully and ask for an explanation of anything you don’t understand.
• Before the loan closing, contact your lender to see if any changes have been made to the Good Faith Estimate.
Have someone who is knowledgeable and whom you trust review the Good Faith Estimate and other loan papers before you finally sign the loan contract. Be sure the terms you are signing are the same ones you agreed to, and make sure all your questions have been answered.
Never sign a contract with a lender who:
• Tells you to falsify information on the loan application (for example, suggests that you write down more income than you really have)
• Pressures you to apply to borrow for more money than you need
• Promises one set of terms but changes them without good reason
• Tells you to sign blank or incomplete forms
• Pressures you to sign before you are ready
Remember! You Have 3 Business Days to Cancel the Loan
Federal law gives you 3 business days after signing the loan papers to cancel a home equity loan—for any reason—without penalty. You must cancel in writing, which then means the lender must return any money you have paid.
You can learn more about home equity loans by visiting the federal gov- ernment’s website for consumers, www.consumer.gov (see the Home and Community section).
Prime Rate
Prime Rate is often used as the foundation for calculating fixed- and variable-rate mortgages and home equity loans. If you read the interest-