INTEREST RATE AND DISCOUNT DISCLOSURE
STATEMENT
This statement regarding the interest rate
and discount points that you may pay on a mortgage guaranteed
by VA (Department of Veterans Affairs) must be delivered to you
prior to execution of the borrower's certification on the HUD/VA
addendum to the Uniform Residential Loan Application.
VA does not establish the interest rate for
mortgage loans to be guaranteed or set either a maximum or minimum
on the interest rate or on discount points that may be paid by
you. This means that you may pay such interest rate and discount
points as you and the lender agree upon. The seller may also pay
the discount points, or a portion thereof, if you and the seller
agree to such an arrangement.
It is important for you to understand that
the interest rate and discount points and the length of time the
lender will honor the loan terms are all freely negotiable with
the lender. Lenders may agree to offer the loan terms for a definite period of time (i.e., 30, 60, or 90
days), or may refuse to do so. This arrangement is commonly referred
to as a lock-in agreement. Keep in mind that your agreement with
the seller will also affect the date you can close your loan.
The terms of your agreement with the lender
will determine the degree, if any, that the interest rate and
discount points may change before closing. An increase of more
that 1.00% in the interest rate may require re-underwriting of
the loan approval by VA or by the lender. It may be necessary
for the lender to obtain your signature on a new application.
If, after re-underwriting, it is determined that you remain qualified
from a credit risk standpoint, the conditions of your agreements
with the lender and the seller may require you to complete the
transaction or lose your deposit.
IT IS YOUR RESPONSIBILITY TO ASSURE THAT YOU UNDERSTAND THE
TRANSACTION.
______________________________________________________________
If you believe you have been
subject to discrimination because of your race, color, religion,
sex, familial status, or national origin, you should call HUD
Fair Housing and Equal Opportunity Complaint hotline: 1(800) 669-9777.
This information must be delivered to you at the time of initial
loan application. Return the original to your lender as proof
of notification and keep a copy for your records. You, the borrower(s)
must be certain that you understand the transaction. Sign below
only after you have read this entire page. Seek professional advice
if you are uncertain.
Applicant : ____________________________________ Date: _____________
Applicant: _____________________________________
Date: _____________
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