From the Library of Lee Bogdanoff Homebuyers Beware From the Library of Lee Bogdanoff This page intentionally left blank From the Library of Lee Bogdanoff Homebuyers Beware Who’s Ripping You Off Now?—What You Must Know About the New Rules of Mortgage and Credit Carolyn Warren From the Library of Lee Bogdanoff Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jim Boyd Editorial Assistant: Myesha Graham Development Editor: Russ Hall Operations Manager: Gina Kanouse Senior Marketing Manager: Julie Phifer Publicity Manager: Laura Czaja Assistant Marketing Manager: Megan Colvin Cover Designer: Chuti Prasertsith Managing Editor: Kristy Hart Project Editor: Betsy Harris Copy Editor: Karen Annett Proofreader: Water Crest Publishing Indexer: Lisa Stumpf Senior Compositor: Gloria Schurick Manufacturing Buyer: Dan Uhrig © 2010 by Carolyn Warren Published by Pearson Education, Inc Publishing as FT Press Upper Saddle River, New Jersey 07458 This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or advice by publishing this book Each individual situation is unique Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales For more information, please contact U.S Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com For sales outside the U.S., please contact International Sales at international@pearson.com Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners All rights reserved No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher Printed in the United States of America First Printing October 2009 ISBN-10: 0-13-702016-3 ISBN-13: 978-0-13-702016-4 Pearson Education LTD Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte Ltd Pearson Education North Asia, Ltd Pearson Education Canada, Ltd Pearson Educatión de Mexico, S.A de C.V Pearson Education—Japan Pearson Education Malaysia, Pte Ltd Library of Congress Cataloging-in-Publication Data Warren, Carolyn, 1950Homebuyers beware : who’s ripping you off now?—what you must know about the new rules of mortgage and credit / Carolyn Warren p cm ISBN 978-0-13-702016-4 (hbk : alk paper) Mortgage loans—United States Credit ratings—United States House buying—United States I Title HG2040.5.U5W357 2010 332.7’22—dc22 2009027598 From the Library of Lee Bogdanoff Wendy L Smith and Brian T Smith, thank you for your enthusiastic support of my writing projects From the Library of Lee Bogdanoff This page intentionally left blank From the Library of Lee Bogdanoff Contents Introduction New Rip-Offs My Credentials What’s Coming Up Easy Reference Guide: Terms to Know Chapter Getting the World’s Cheapest Loan 11 Save Time and Money by Learning from This True Story 11 Make Your Experience Easier, Smoother, and Better 18 Coming Up Next 18 Chapter What’s New with Credit 19 Are You Getting Ripped Off By Your Own Credit Score? 21 How Lenders Rate Credit 23 Beware of Bogus Credit Scores 24 10 Common Misconceptions About Credit Scoring 25 How Your Score Compares with Others’ 27 Coming Up Next 28 Endnotes 28 Chapter Quick, Easy Ways to Raise Your Credit Score 29 Nine Ways to Raise Your Score, Quick and Easy 30 If You Have No Credit History 36 Get More Respect with an 800 Score 37 Coming Up Next 38 From the Library of Lee Bogdanoff viii Chapter HOMEBUYERS BEWARE Aggressive, Innovative Ways to Fix Credit 39 Innovative Method #1: Use Charm to Get a Goodwill Agreement 41 Innovative Method #2: Demand the Removal of Old Collections and Interest Charges 43 Aggressive Method #3: Insist They Stand by Their Original Agreement 46 Coming Up Next 50 Chapter Five-Step Plan for People Working Toward Buying a Home 51 Five Fun, Easy Steps to Home Ownership 51 Coming Up Next 55 Chapter How to Recover from a Foreclosure or Short Sale 57 How Long After a Foreclosure or Short Sale Until You Can Buy Again? 59 Getting an Exception for Extenuating Circumstances 60 The Great American Comeback 60 Coming Up Next 61 Endnotes 61 Chapter Beware of Privacy Pirates! 63 How to Protect Yourself from ID Rip-Off Artists 64 Five Proactive Steps to Avoid Being a Victim of ID Theft 64 Five Steps You Must Take If Your ID Is Stolen 66 What to Do If Your ID Is Lost 68 You Can’t Be Too Careful 68 Coming Up Next 68 From the Library of Lee Bogdanoff CONTENTS Chapter ix Don’t Buy a House Until You Read This 69 Gain an Uncommon Advantage Over Your Competitors 70 Further Explanation About the Earnest Money Deposit 73 Coming Up Next 74 Chapter When Is the Best Time to Buy a Home? 75 When Is It a Good Time to Buy? 75 Will You Get a Cheaper Price by Waiting? 78 The Folly of Procrastination 78 Coming Up Next 80 Chapter 10 The Loan Process in Ten Easy Steps 81 Carolyn’s Ten-Step Loan Process Checklist 81 Coming Up Next 86 Chapter 11 Choose the Right Loan for YOU 87 How Much Down Payment Is Required? 87 Which Loan Program Is Best for You? 88 Coming Up Next 96 Chapter 12 Broker, Banker, or Direct Lender? 97 Find Your Mortgage Star 98 What About Credit Unions? 100 Coming Up Next 101 Chapter 13 How to Shop for a Loan Without Getting Tricked 103 Bad Advice Disguised as a Helpful Tip 103 How to Find a Mortgage Star 106 How to Handle a “Forgotten” Fee 108 Why You Need the Good Faith Estimate Before Making a Decision 109 Coming Up Next 111 From the Library of Lee Bogdanoff This page intentionally left blank From the Library of Lee Bogdanoff INDEX Symbols 15-year fixed loan, 89 versus 30-year loan, 210 refinancing to, 203 30-year fixed loan, 88 versus 15-year loan, when refinancing, 210 5/1 ARM, 92 620 credit score, 22 7/1 ARM, 92 800 credit score, 37-38 A accounts, freezing, 68 action ads (Internet), 231 adjustable rate loans, refinancing, 210 Adjusted Origination Charges, Good Faith Estimate new form, 162 administration fees, 117-118 adverse credit, loan approval, 177 advertised rates, deceptive practices, 232 aggregate calculations, 32 ancillary fees, 126 annual credit reports, credit scores, 23 annual percentage rate (APR), anti-predatory laws, application fees, 119-120, 158 appraisal fees, 121 Good Faith Estimate, 158 appraisal review fees, 126 appraisals, 84 free appraisal reports, 233-234 Home Value Code of Conduct (HVCC), 247-250 low values when refinancing, 213 refinancing, 203 appraisers, questions for, 250 approval for loans, 173-175 adverse credit, 177 asset requirements, 176 credit score requirements, 176 down payment requirements, 175-176 eligible borrowers, 178 income requirements, 177-178 APR (annual percentage rate), “ask ten questions,” 105-106 255 From the Library of Lee Bogdanoff 256 AskCarolynWarren.com, 76 assets, requirements for, 176 attorney fees, 122 AU (automated underwriting), 7, 21 auto-pay, improving your credit score, 31 avoiding finance companies, 35 identity theft, 64-65 B back-end commission, getting world’s cheapest loan, 11 bad advice “ask ten questions,” 105-106 “shop deep and wide,” 104 balances on credit cards, keeping below 10% (improving your credit score), 31-33 balloon payment loan, 161 bankruptcy, 177 bankruptcy scoring See credit scores Berry, Michael, 63 Better Business Bureau (BBB), radio ads, 226 bogus credit scores, 24 broker fees, 132, 234 buyer’s agents, reasons for, 185-189 buying down interest rates, 131 discount fee, 132 loan origination fee/broker fees, 132 C INDEX choosing loan officers, 105 loan programs, 88 15-year fixed rate loans, 89 30-year fixed rate loans, 88 5/1 ARM, 92 7/1 ARM, 92 High Balance Loan, 91 Interest Only (IO) Loans, 90-91 Option ARM, 93-95 city stamp tax, fees, 125 closing, 86 credit cards, 34 date of occupancy, 188 closing costs loan origination fee/broker fee, 132 prepaid interest or daily interest charge, 133 refinancing, Good Faith Estimate, 208 reserves, 133 Coker, Heath, 187, 196 collection agencies, incentives for reps, 47 collections, removing from credit reports, 41-42 insist they stand by original agreement, 46-49 letters of demand, 43-46 commission, loan officers, 119 competition, deceptive practices, 229-230 condominiums, 220 refinancing, 215 contingencies, earnest money, 73 conventional loans, down payments, 87 charm, getting goodwill agreements, 41-42 From the Library of Lee Bogdanoff INDEX cost of “no fees,” 116 of refinancing, 209-210 courier fees, 123 credit, how lenders rate credit, 23-24 credit bureaus, 23 credit cards closing, 34 lost cards, 68 credit history, lack of, 36 credit reports collections, 41-42 demanding removal of, 43-46 insist they stand by original agreement, 46-49 fees, 124 steps to home ownership, 53-54 credit scores, 21 620 score, 22 720 credit score, 22 740 score, 22 800 score, 37-38 bogus credit scores, 24 comparing, 27 how lenders rate credit, 23-24 improving auto-pay, 31 avoiding finance companies, 35 building a mix of credit accounts, 36 charge something every quarter, 34 cherish long-standing accounts, 33-34 keeping balances below 10%, 31-33 257 opting out of solicitations by credit card companies, 30 saying no to credit card enticements, 35 using HELOC (Home Equity Line of Credit), 36 interest rates, 22, 29 misconceptions about, 25-27 requirements for, 176 credit unions, 100-101 “shop deep and wide,” 103 D daily interest charge, 133 date of occupancy, 188 DeBord, Sam, 195 debt bad debt to good debt, 243-245 rolling into refinance, 200-201 debt-to-income ratio (DTI), deceptive practices action ads (Internet), 231 advertised rates, 232 “compete slogan,” 229-230 equity acceleration programs, 236-238 free appraisal reports, 233-234 no points, 234-235 no-cost mortgages, 235-236 radio ads, 225-228 ten-million-dollar mortgage man, 241-243 turning bad debt to good debt, 243-245 deciding to refinance, 210-211 declining home values when refinancing, 213 deed-in-lieu of foreclosure, 59 From the Library of Lee Bogdanoff 258 desktop underwriting (DU), 7, 21 discount fees, 8, 132, 234 Good Faith Estimate, 157-158 disputing late payments, 39-40 document preparation fees, 127 document review fees, 127 documentation, gathering for loan officers, 84 documents, signing loan documents, 85 double dipping, 117 down payments, 87 requirements for, 175-176 DTI (debt-to-income ratio), DU (desktop underwriting), 7, 21 dual agents, 185, 192 duplexes, 220 E earnest money, 70, 73-74 Ellis, Ross, 197 e-mail fees, 127 Equifax Credit Information Services, 23, 67 equity acceleration programs, 236-238 escrow, escrow accounts, refinancing, 204 escrow companies, 123 junk fees, 126 escrow/settlement fees, 122-124 examples, Leanne (getting the world’s cheapest loan), 11-18 Experian, 23, 67 extenuating circumstances, 60 INDEX F Fair Credit Reporting Act (FCRA), 30 Fair Isaac Corporation (FICO), 23 Federal Housing Administration (FHA), Federal Trade Commission, reporting identity theft, 67 fees administration fees, 117-118 application fees, 119-120, 158 appraisal fees, Good Faith Estimate, 158 broker fees, 132 for cash out refinance, 214 courier fees, 123 discount fees, 132 Good Faith Estimate, 157-158 example of excessive negotiations of, 113-116 forgotten fees, 108-109 junk fees, 125-126 ancillary fees, 126 appraisal review fees, 126 doc prep fees, 127 doc review fees, 127 e-mail fees, 127 funding fees, 128 photo review fees, 128 lender fees, 121, 158 loan origination fees, 132 miscellaneous, 158 “no fees,” 116 origination fees, versus interest rates, 139 other fees, 121 processing fees, 118 From the Library of Lee Bogdanoff INDEX refinancing, townhomes (condominiums), 215 subescrow fees, 125 third-party fees, 121 appraisal fees, 121 attorney fees, 122 credit reports, 124 escrow/settlement fees, 122-124 flood certification, 124 reconveyance fees, 125 recording fees, 125 state or city stamp tax fees, 125 surveys, 125 tax service, 124 title insurance, 124 underwriting fees, 117-118 FHA (Federal Housing Administration), FHA (Federal Housing Administration) loan, down payments, 87 FICO (Fair Isaac Corporation), 23 finance companies, avoiding, 35 finding mortgage stars, 106-108 real estate stars, 198 float-down option, interest rates, 166 flood certification, 124 Flournoy, Jamie, 193 Flynn, Patrick, 197 for sale by owner, 194-197 real estate agents for homebuyers, 189-191 foreclosures, 57-58 defined, 59 extenuating circumstances, 60 259 not just for income-challenged folks, 60-61 wait time before you can buy again, 59 “forgotten” fees, 108-109 free appraisal reports, 233-234 free credit scores, 24 freezing accounts, 68 funding fees, 128 G garbage fees See junk fees goals, steps to home ownership, 51-52 Good Faith Estimate (GFE), 8, 81, 151, 155 current form from HUD, 155 example, 128-131 new form, 160 problems for borrowers, 161-163 new proposed form from HUD, 152, 157 reasons for, 109-110 refinancing, 203 closing costs, 208 tricks by lenders discount fee, 57-158 mandatory costs left blank, 158 no appraisal fee, 158 prepaid interest omitted, 160 seller contribution predicted, 160 YSP as a range, 159 YSP is nowhere to be found, 159 goodwill agreements, charm, 41-42 From the Library of Lee Bogdanoff 260 H HELOC (Home Equity Line of Credit), 36, 218-219, 237-238 Herbst, Gary, 185 High Balance Loan, 91 homebuying earnest money, 73-74 offers, 69, 82 earnest money, 70 letter of approval for financing, 71-72 procrastinating, 78-79 when is a good time to buy, 75-78 credit in order, 76 credit scores, 77 debt, 76 income, 77 savings, 77 Home Equity Line of Credit (HELOC), 36, 218-219, 237-238 home improvements, refinancing, 202 home inspections, 83 home inspectors, 73 home ownership, steps to, 51 goals, written down, 51-52 order credit reports, annually, 53-54 read about credit and home buying, 54 stash cash, 54 stickers, placing on credit cards, 52-53 home sellers real estate agents, paying for, 193-194 selling your house yourself, 194-197 INDEX Home Value Code of Conduct (HVCC), 247-250 homebuyers, real estate agents for, 183 don’t call the agent on the sign, 183-184 for sale by owner properties, 189-191 new construction homes, 191-192 reasons to have a buyer’s agent, 185-189 HUD (U.S Department of Housing and Urban Development), Good Faith Estimate forms, 151 HUD-1 Settlement Statement, 85, 155 HVCC (Home Value Code of Conduct), 247-250 I identity theft, 63, 68 avoiding, 64-65 reporting, 66-67 steps to take after, 66-67 improving credit scores auto-pay, 31 avoiding finance companies, 35 building a mix of credit accounts, 36 charge something every quarter, 34 cherish long-standing accounts, 33-34 keeping balances below 10%, 31-33 opting out of solicitations by credit card companies, 30 saying no to credit card enticements, 35 From the Library of Lee Bogdanoff INDEX using HELOC (Home Equity Line of Credit), 36 income, requirements for, 177-178 individual calculation, 32 installment loans, 36 insurance, outside of the loan (refinancing), 214 interest, prepaid interest, 209 interest charges, removing from collections, 43-46 Interest Only (IO) Loan, 90-91 Interest Only Loans, refinancing, 210 interest rates, 83 buying down, 131 discount fees, 132 loan origination fees/broker fees, 132 credit scores, 22, 29 float-down option, 166 locking in, 165-166 float-down option, 166 knowing when to, 167-169 length of rate lock, 169 switching lenders, 166 written confirmation, 170-171 versus Origination Fee, options, 139 spikes in, 171-172 YSP (Yield Spread Premium), 140 Internet action ads, 231 advertised rates, 232 “compete slogan,” deceptive practices, 229-230 power of strong Internet presence, 196 IO (Interest Only) Loans, 90-91 261 J Jumbo Loan, appraisal fees, 122 Jumbo Loan program, 91 junk fees, 125-126 ancillary fees, 126 appraisal review fees, 126 doc prep fees, 127 doc review fees, 127 e-mail fees, 127 funding fees, 128 photo review fees, 128 K–L Kiddie Condo Loan Program, 221 lack of credit history, 36 late payments, disputing, 39-40 laws, Yield Spread Premium (YSP), 145-147 lead generation companies, 229 Leanne, getting world’s cheapest loan, 12-18 lender fees, 121, 158 lenders versus mortgage brokers, 147-148 rating credit, 23-24 without YSP (Yield Spread Premium), 137-139 letters of approval for financing, 71-72 letters of demand, old collections and interest charges, 43-46 loan approval, 173-175 adverse credit, 177 asset requirements, 176 credit score requirements, 176 down payment requirements, 175-176 From the Library of Lee Bogdanoff 262 eligible borrowers, 178 income requirements, 177-178 loan consultants, loan documents, signing, 85 loan offers, reasons for finding a good loan officer, 98-99 loan officers, 8, 100 choosing, 81, 105-107 commission, 119 forgotten fees, 109 refinancing, pressure to, 208 treatment of, 251 loan origination fees, 132 loan programs choosing, 88 15-year fixed rate, 89 30-year fixed rate, 88 5/1 ARM, 92 7/1 ARM, 92 High Balance Loan, 91 Interest Only (IO), 90-91 Option ARM, 93-95 Jumbo Loan program, 91 loan-to-value (LTV), fees for cash out refinance, 214 loans 15-year fixed, 89 30-year fixed, 88 5/1 ARM, 92 7/1 ARM, 92 balloon payment loan, 161 FHA loans, 87 HELOC (Home Equity Line of Credit), 218-219 High Balance Loan, 91 Interest Only (IO), 90-91 Kiddie Condo Loan, 221 No Income Verification (NIV) Loan, 218 INDEX no-Origination Fee loans, 145-147 Option ARM, 93-95, 136, 244 pick-a-payment loans, 136, 244 Stated Income loan, 218 VA loans, 87 locking in interest rates, 165-166 float-down option, 166 knowing when to, 167-169 length of rate lock, 169 switching lenders, 166 written confirmation, 170-171 longevity points, 33 lost credit cards, 68 LTV (loan-to-value), fees for cash out refinance, 214 M market analysis, 197 Merrion, Daniel, 188 miscellaneous fees, 158 misconceptions about credit scores, 25-27 MLM (multilevel marketing), 237-238 mortgage brokers versus national lenders, 147-148 mortgage consultants, mortgage rates, influences on, 169 mortgage stars, 106, 251 See also loan officers MortgageHelper.com, 120 mortgages paying off, 215 reverse mortgages, 221-223 Moses, Judy, 185, 194 multilevel marketing (MLM), 237-238 multiplex properties, 220 From the Library of Lee Bogdanoff INDEX 263 N P National Association of Mortgage Brokers, 148 national lenders versus mortgage brokers, 147-148 neg am (negative amortization), negative amortization, 245 negotiating fees, example of over negotiating, 113-116 network relationships, 196 new construction homes, real estate agents for, 191-192 NIV (No Income Verification) loan, 218 no credit history, 36 “no fees,” cost of, 116 No Income Verification (NIV) loan, 218 no points, 234-235 no-cost mortgages, 235-236 no-Origination Fee loans, 145-147 nonconforming loans, 19 nonoccupant coborrowers, 179 Paid Outside Closing (POC), 136 par rate, 9, 136, 140 pay for real estate agents, 193-194 photo review fees, 128 pick-a-payment loans, 136, 244 pledges, required of realtors, 182-183 POC (Paid Outside Closing), 136 points, no points, 234-235 refinancing, 201 preapproval, 82 prepaid interest, 133, 209 tricks by lenders, 160 prices, market analysis, 197 processing fees, 118 procrastinating buying a house, 78-79 purchase and sale agreements, finalizing, 83 O offers on houses, 69 earnest money, 70 letter of approval for financing, 71-72 making, 82 opting out of solicitations by credit card companies, 30 Option ARM, 93-95, 136, 161, 244 OptOutPrescreen.com, 31 Origination Fee, 9, 234 versus interest rates, 139 other fees, 121 overages, 137-138 Q–R quizzes on refinancing, 199-200 radio ads Better Business Bureau, 226 deceptive practices, 225-228 rate quotes, 227 Rate Lock Confirmation Letter, 170-171 rate locks, length of, 169 rate quotes, radio ads, 227 rate shoppers, 103 rates advertised rates, 232 interest rates See interest rates par rate, 136, 140 From the Library of Lee Bogdanoff 264 reading about credit and home buying, steps to home ownership, 54 real estate agents, 181 See also realtors dual agents, 185, 192 finding the best, 198 for home sellers pay for real estate agents, 193-194 selling your house yourself, 194-197 for homebuyers, 183 don’t call the agent on the sign, 183-184 for sale by owner properties, 189-191 new construction homes, 191-192 reasons to have a buyer’s agent, 185-189 ten-million-dollar mortgage man, 242 realtors, pledges that are required, 182-183 reconveyance fees, 125 recording fees, 125 refinancing, 200 15-year loan versus 30-year loan, 210 adjustable rate loans, 210 appraisals, 203 closing costs, Good Faith Estimate, 208 condominiums, 215 considerations for, 207 costs of, 209-210 deciding to, 210-211 escrow accounts, 204 fees for cash out refinance, 214 Good Faith Estimates, 203 home improvements, 202 INDEX Interest Only Loans, 210 into shorter loans, 203 loan officers, pressure on, 208 low appraisals, 213 quiz, 199-200 recurrence of, 202 rolling in other debts, 200-201 streamline refinance, 215 taxes, 204 taxes and insurance, outside of the loan, 214 title insurance, 215 townhomes, 215 zero points, 201 removing collections from credit reports, 41-42 letters of demand, 43-46 insist they stand by original agreement, 46-49 reporting identity theft, 66-67 requirements for assets, 176 for credit scores, 176 for down payments, 175-176 for income, 177-178 reserves, closing costs, 133 reverse mortgages, 221-223 rip-off artists, 64 S saving steps to home ownership, 54 when to buy a home, 77 scorecards, 32 second homes, 220 self-employed, 178 seller contributions, tricks by lenders, 160 selling house yourself, 194-197 service, radio ads (deceptive practices), 228 Service Release Premium, 137 From the Library of Lee Bogdanoff INDEX “shop deep and wide,” bad advice, 103-104 shopping cart, Good Faith Estimate (new form), 161 short sales, 59 wait times before you can buy again, 59 Smith, Wendy, 185, 196 Social Security Administration, reporting fraud, 67 spikes in interest rates, 171-172 state stamp tax fees, 125 Stated Income loan, 218 stickers, steps to home ownership, 52-53 streamline refinance, 215 subescrow fees, 125 subprime loans, 19 surveys, fees, 125 switching lenders after locking in interest rates, 166 T table funding, 86 tax deductions, paying off mortgages, 215 tax service, fees, 124 taxes, refinancing, 204 outside of loans, 214 ten-million-dollar mortgage man, 241-243 turning bad debt into good debt, 243-245 Ten-Step Loan Process Checklist appraisal and title report, 84 closing, 86 finalizing purchase and sale agreement, 83 gathering documentation, 84 Good Faith Estimate (GFE) and choosing loan officers, 81 265 home inspections, 83 locking in interest rates, 83 making an offer, 82 preapproval, 82 signing loan documents, 85 underwriters, 85 third-party fees, 121 appraisal fees, 121 attorney fees, 122 credit reports, 124 escrow/settlement fees, 122-124 flood certification, 124 reconveyance fees, 125 recording fees, 125 state or city stamp tax fees, 125 surveys, 125 tax service, 124 title insurance, 124 TIL (Truth-in-Lending form), timing, when is a good time to buy, 75-78 credit in order, 76 credit scores, 77 debt, 76 income, 77 savings, 77 title insurance fees, 124 refinancing, 215 titles, 84 townhomes, 220 refinancing, 215 TransUnion, 23 reporting fraud, 67 tricks by lenders, Good Faith Estimate discount fees, 157 mandatory costs left blank, 158 no appraisal fee, 158 prepaid interest omitted, 160 seller contribution predicted, 160 From the Library of Lee Bogdanoff 266 INDEX YSP as a range, 159 YSP is nowhere to be found, 159 Truth-in-Lending form (TIL), U U.S citizens, 179 U.S Department of Housing and Urban Development (HUD), Good Faith Estimate (new forms), 151 underwriters, 9, 85 underwriting fees, 117-118 unearned income, 178 unemployment, 178 laws, 145-147 lenders without, 137-139 principles to understanding, 139-143 tricks by lenders, 159 Z zero points, refinancing, 201 zero-cost mortgages, 235-236 V VA loans, 87 vacation home, 220 victims of identity theft, protecting yourself after, 66-67 W-X Washington Mutual Bank, Option ARM, 93 Web sites AskCarolynWarren.com, 76 MortgageHelper.com, 120 OptOutPrescreen.com, 31 Williams, Don, 196 World Savings, Option ARM, 93 Y Yield Spread Premium (YSP), 9, 15, 105, 135-136 caution when using, 136 interest rates, 140 From the Library of Lee Bogdanoff This page intentionally left blank From the Library of Lee Bogdanoff From the Library of Lee Bogdanoff .. .Homebuyers Beware From the Library of Lee Bogdanoff This page intentionally left blank From the Library of Lee Bogdanoff Homebuyers Beware Who’s Ripping You Off Now? What You Must Know About. .. Ltd Library of Congress Cataloging-in-Publication Data Warren, Carolyn, 195 0Homebuyers beware : who’s ripping you off now? what you must know about the new rules of mortgage and credit / Carolyn... savings in the time they’d normally pay off their mortgage, would that be even better?” “Yes, of course.” From the Library of Lee Bogdanoff HOMEBUYERS BEWARE “Great Then if I show you this and it