This is a sample of a TEGO Certified "How Your Loan Really Works" document for a fixed rate loan. Your lender or closing agent will enter your loan information into TEGO's proprietary software. When they're done, the TEGO sytem will provide you with an easy to read version of your loan terms. We will point out critical things like:

Is your loan a fixed rate, adjustable, or a hybrid (combination)?

Is there a prepayment penalty?

Does your loan allow for interest only payments?

Is your rate locked?

Does your loan have a negative amortization option?

Is there a balloon payment? When is it due?

TEGO CERTIFIED

How Your Loan Really Works - Fixed

Loan #:
Borrower:
Property Address:
City:
State: 

1
Frank Johnson
25 University
Oakland
CA

How your loan really works - Fixed Borrower Notice


TEGO has the specific details of your loan given by your lender. We think it is important for you to understand everything about your loan in simple language and for you to get the loan you deserve with no surprises. The loan program currently being offered by your lender Bill Jones is FIXED.


Your loan amount will be $ 300000.00.


The interest rate being quoted is 6.250%


This rate will be fixed for 30 years.


Your rate is locked for 30 days.


The monthly payment on your loan based on the above interest rate is $ 1847.15


This payment does not include property taxes, insurance, or other monthly costs that may be associated with your loan.


Your loan gives you the option of making an interest only payment. Selecting this lower payment will not lower your loan balance. The interest only payment would be: $ 1562.50 monthly. Your loan has a prepayment penalty.


If you pay your loan off within 36 months you will have to pay the lender extra money. These penalties can amount to thousands of dollars. Even though you think you may not want to pay your loan off early. sometimes an unexpected need forces you to pay off or replace this loan. Prepayment penalties are seldom required. TEGO always recommends you have your loan officer provide you with a loan offer that does not include a pre payment penalty. This may affect your rate and up front loan costs. Beware that some loan programs pay the loan officer more money if it has a prepayment penalty. Under no circumstance should your Loan originator receive extra compensation just for including prepayment penalty in your loan.