Mortgage Rates
Refinance Rates
FHA Rates
VA Rates
Jumbo Rates
Adjustable Rate Mortgage Rates
Interest Only Mortgage Rates
Non-Owner Occupied Rates
Home Equity Loan Rates
TRID Mortgage Rule Overview and How it Affects Borrowers

TRID Mortgage Rule Overview and How it Affects Borrowers

    The TILA-RESPA Integrated Disclosure Rule, typically known as TRID, was passed in 2013 and became effective October 3rd, 2015.  TRID is also referred to as the "Know Before You Owe" rule because it addresses the information and knowledge borrowers should possess before they get a mortgage and start making monthly payments.  TRID applies to all traditional mortgages but does not apply to home equity lines of credit (HELOC), reverse mortgages or mobile home loans.

    TRID regulates the mortgage process and dictates what information lenders are required to provide to borrowers and when they are required to provide it.  TRID also regulates what fees and how much lenders can charge mortgage borrowers and how these fees can change over the course of the mortgage process.  TRID was designed to help borrowers select the mortgage that is right for them and to protect them from getting ripped off by lenders.

    The goal of TRID is to make sure borrowers have all the information necessary to make an informed decision about their mortgage and to ensure that lenders do not promise one thing at the beginning of the mortgage process to get a borrower’s business, such as a low interest rate or fees, and then deliver something different, such as a higher interest rate or fees, at the end of the process when the mortgage is about to close.  This is called a “bait and switch” and is one of the lender tactics that TRID is designed to eliminate.

    TRID essentially combines the two laws that had previously governed the mortgage process: the Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).  By combining two laws into one, the federal government is hoping to make the mortgage process more manageable and transparent for borrowers.  In addition to combining the two laws into one, TRID consolidates the four disclosure documents required by the TILA and RESPA -- the Good Faith Estimate, the estimated and final Truth-in-Lending Statements and the HUD-1 Statement -- into two disclosure documents: the Loan Estimate and the Closing Disclosure.

    • The Loan Estimate is provided by the lender to the borrower at the beginning of the mortgage process and outlines the key terms of the mortgage including interest rate, closing costs and mortgage features. The Loan Estimate must be delivered by the lender to the borrower in-person or by email or mail within three business days of the borrower submitting a mortgage application to the lender.  In short, borrowers should use the Loan Estimate to compare lender proposals and decide if they want to move forward with the mortgage process.  Submitting a mortgage application and receiving an Loan Estimate from a lender does not obligate the borrower to work with that lender.
    • The Closing Disclosure is provided by the lender to the borrower at the end of the mortgage process and outlines the final, actual terms of the mortgage including interest rate and closing costs. The lender is required to provide the Closing Disclosure to the borrower in-person or by email or mail at least three days before the mortgage closes.  Borrowers should compare the Closing Disclosure to the Loan Estimate to make sure that the final terms of the mortgage did not change, or increase, significantly as compared to the estimated terms provided at the beginning of the mortgage process.  Comparing the Closing Disclosure to the Loan Estimate will help borrowers avoid a bait and switch by the lender.  If the final interest interest rate or closing costs as disclosed in the Closing Disclosure increased significantly as compared to the Loan Estimate, ask the lender for an immediate explanation and if the explanation is not satisfactory, consider cancelling the mortgage.

    Lender Fees Worksheet: although it is not required by TRID, you should also ask lenders for a Lender Fees Worksheet, which provides an additional, detailed breakdown of all the costs and expenses associated with a mortgage that you can use to compare lender proposals.  The Lender Fees Worksheet may provide additional information that you can use to negotiate better mortgage terms.  For example, you can use the worksheet to compare specific cost items, such as origination, appraisal, title and escrow fees, across multiple proposals and see if a lender is willing to match the lowest cost for an item.

    According to TRID, lenders cannot charge borrowers a fee for submitting a mortgage application or for receiving a Loan Estimate.  The only fee a lender can charge the borrower before providing the Loan Estimate is a small credit report fee ($10 - $30).  In addition, lenders are not permitted to require you to provide documents that verify the information on your loan application before providing the Loan Estimate.

    If used properly the Loan Estimate and Lender Fees Worksheet are highly valuable tools for borrowers to review proposals and negotiate the best terms for their mortgage.  You should request the Loan Estimate and Lender Fees Worksheet when you interview lenders and request mortgage quotes from them.  If a lender is unwilling to provide these documents at the time you submit a mortgage application or request a proposal, this raises a red flag and you should contact other lenders.

    We recommend that you compare mortgage proposals from at least five lenders.  Contact lenders in the table below to request loan terms.  Shopping for your mortgage is the best way to find the lender and loan that are right for you.

  • Rate Details*
    Loan Program:  
    Monthly Payment:  
    APR:  
    Rate:  
    Points  More Info:
    Points: Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
     
    Total Lender Fees:  
    Loan type:  
    Property Value:  
    Loan to Value:  
    Credit Rating:  
    Date Submitted:  
    Monthly Housing Payments
    P & I More Info
    Principal & Interest: A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to the reduction of the principal balance.
    Mortgage Insurance More Info
    Mortgage Insurance: The monthly cost for a policy that protects the lender in case you’re unable to repay the full amount of the loan. It is typically required for loans that have a loan-to-value ratio between 80% to 100%.
    (Estimated)
    Property Tax More Info
    Property Tax: (Also called "Real Estate Tax.") Property taxes are government assessments on real estate property. With mortgage financing, the local, county or state tax assessment on real estate property is considered part of the monthly housing obligation and typically collected and set aside by the lender ...
    (Estimated)
    Homeowner Insurance More Info
    Homeowner Insurance: or also commonly called hazard insurance, is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.lender ...
    (Estimated)
    Homeowner Association Fee More Info
    Homeowner Association fee: (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs.
    (If Any)
    Total Monthly Housing Payments
    Lender Fees
    Points More Info
    Points Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
    Origination Fee More Info
    Origination Charge: A loan origination charge is a fee charged by the lender for evaluating, processing, and closing the loan.
    Credit Report Fee More Info
    Credit Report Fee: Fee charged to obtain an applicant’s credit history prepared by one or all of the three major credit bureaus. Used by lender to determine the borrower’s creditworthiness.
    Tax Service Fee More Info
    Tax Service Fee: A fee charged by the lender to cover the cost of retaining a tax service agency. These agencies monitor the property tax payments on the property and report the results to the lender.
    Processing Fee More Info
    Processing Fee: A processing fee is a charge by the lender for clerical items associated with the loan. Examples of processing include loan set up, organization of loan conditions for underwriting, and preparing required disclosures for the borrower.
    Underwriting Fee More Info
    Underwriting Fee: A fee charged by the lender to verify information on the loan application, authenticate the property’s value, and perform a risk analysis on the overall loan package.
    Wire Transfer Fee More Info
    Wire Transfer Fee: In most cases lenders wire funds to escrow companies to fund a loan. Commercial banks that perform this function will charge the lender so the fee is generally passed on to the borrower.
    (If Any)
    FHA Upfront Premium More Info
    FHA Upfront Premium: A fee paid in cash at the close of escrow or more commonly it is financed into the loan. These premiums are pooled together by the FHA and are used to insure the risk of borrower default on FHA loans. FHA upfront premiums are prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the FHA upfront premium paid at loan inception.
    (If any)
    VA funding Fee (If any)
    Flood Fee
    Other Fees More Info

    Other fees could be either additional Administrative Fees that a lender charges or it could be a Flat Fee to cover all lender charges such as: (Origination Fees, Points, Underwriting and Processing Fees, Credit Reports and Tax Service Fees)

    The flat fee does not include prepaid items and third party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower’s attorney’s fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services.

    Total Lender Fees
    *Actual rates and other information may vary. Sponsored results shown only include participating lenders. The information you enter on this page will only be shared with lenders you choose to contact, either by calling the phone number or requesting a quote.
    Current Mortgage Rates as of December 11, 2018
    • Lender
    • APR
    • Loan Type
    • Rate
    • Payment
    • Fees
    • Contact
    Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Click here for more information on rates and product details.
  • Sources

    TRID: https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/2013-integrated-mortgage-disclosure-rule-under-real-estate-settlement-procedures-act-regulation-x-and-truth-lending-act-regulation-z/

About the author

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

X

Get Free Personalized Mortgage Quotes

First Name:
Last Name:
Phone Number:
Email:

My Mortgage Info

Mortgage Type
Credit Score
Loan Amount
Property Value
City
State
GET FREE Quotes
FREEandCLEAR.comThank you for submitting your information!
FREEandCLEAR.comYour mortgage quote request has been sent to our lending partners and you should receive emails from multiple lenders shortly
FREEandCLEAR.comComparing proposals from multiple lenders is the best way to save money on your mortgage!