Check Your Understanding Answers
- Which pages of the Closing Disclosure will always look the same regardless of the loan type?
Pages 2 and 3 will always look the same, regardless of the loan type.
- What information does the Loan Terms section of Page 1 provide?
It gives the exact figures for the loan amount, interest rate, and monthly principal and interest payment, and indicates whether any of those amounts can increase after closing.
It also indicates whether or not there is a prepayment penalty or balloon payment with the loan, and if so, gives the specifics that apply to that feature.
- What does the Other Costs section include on Page 2 of the Closing Disclosure?
- Taxes and other government fees
- Prepaids
- Initial escrow payment at closing
- HOA fees, home warranty fees, home inspection fees, and/or real estate commission
- What is a borrower affirming by signing the Confirm Receipt section of the Closing Disclosure?
The borrower is signing to confirm receipt of the Closing Disclosure form. Signing the document does not indicate acceptance of the loan.
