Homeowners have a right to know true cost of a mortgage Customers have a right know true cost of their mortgage. There are many components that make up a mortgage package, each with its own variable cost. Make sure that you know what is in your package and exact dollar amounts before you close on your home loan. Some of items are down payments, interest rates, points, closing fee, appraisal costs and insurance payment for first month.

To encourage this open practice nationwide, Fannie Mae has created a True Cost Calculator. Customers can enter their information and see what true total cost will be for their mortgage, and their options for saving some money.

Homeowners have right to be free of regulatory burden You have right to get new homes and mortgage financing without too much intrusion from government as far as regulatory fees, paperwork and time are concerned. This does not free your or your builder from abiding by local laws and zoning ordinances. Instead, this type interference will be reduced and not hamper your ability to qualify for a mortgage, or leave you open to huge fees when you try to close.

Homeowners have a right to know about mortgage decisions There will be more transparency among lenders and brokers so that customers know what goes into a mortgage package, who makes decisions, when are decisions being made, and what you can do if outcome is not what you intended, or what you would like to happen. It should always be clear, or feel free to ask your Broker, Banker or Lender: what else can you do to make application process smooth and efficient?

And what are your rights as far as making changes later on and if there are any fees attached to changing your mind.

Every banker or lender in industry should be familiar with your Mortgage Bill of Rights. You can find out more at Fannie Mae Website.

How does this all affect you? Since your loan will spend majority of its lifetime floating in secondary market, they institutions involved have setup strict guidelines and requirements that determine what type of information is needed from you before they can work with your loan. All of guidelines are based to some extent on systems set up by Fannie Mae and Freddie Mac.

As each lender determines type of risk they can absorb in marketing they may work strictly within guidelines of Fannie Mae and Freddie Mac or they may take a more flexible approach to approving their loans. The guidelines of these Mortgage giants are constantly changing, therefore, it is to your advantage to seek out a reputable company and Mortgage Broker that will fully comprehend them and know how they apply to your particular mortgage file.

Even better, get to know players and rules on your own. Never be at mercy of a banker or Mortgage Broker again. For information visit home pages of following organizations:

Fannie Mae – http://www.fanniemae.com Freddie Mac – http://www.freddiemac.com Ginnie Mae – http://www.ginniemae.gov