Apartments for rent in Tampa Florida
CLOSING DISCLOSURE PAGE 4
The closing disclosures are like the final to-do list for your home purchase, showing all the details about your loan, fees, and payments. It’s important for, you the buyer, to carefully go through and understand each part, checking them off to make sure everything matches up. This ensures there are no surprises and that you know exactly what you’re agreeing to before signing on the dotted line!
This is the part where we talk about the assumption of the loan—basically, if you ever pass the loan to someone else, like selling your house or giving it to a friend, they would "step into your shoes" and take over the loan. It's like handing off a baton in a race—the new person picks up right where you left off and keeps running with it!
This section explains that the lender can demand full repayment of the loan anytime they fell like it. This is an option.
This is the section that explain the late fee if you fail to pay on time.
This is the section that explains negative amortization. This is when you make a monthly mortgage payment and it is lower than the minimum and the payment does not cover the interest amount on that payment. The remaining interest is carried over to the balance. In other words, you made a payment but your balance has increased instead of decreasing. This feature is optional.
This is the section that explains that you are allowed to make partial payments on your balance.
This is the section that explains your escrow account.
Escrow account could also be called an impound account or a trust account.
This part explains your escrow account... kind of like a savings jar where money is set aside for your homeowner’s insurance and property taxes. You can think of it as a helper that keeps things simple and paid on time! If you decide not to set one up, you’ll have to handle those big bills yourself, paying them in one or two hefty chunks, like getting a surprise super-sized bill twice a year!
