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CATHERINE REAGOR REAL ESTATE
Slow-it-down mortgage rule may be good
Paying rent to the ’rents Adult kids living at home raise a difficult question for Mom and Dad SOLVEJ SCHOU | ASSOCIATED PRESS • Parents whose grown children are living at home — and their num-
bers are growing — can face a complicated question: whether to charge rent, and how much. • Circumstances vary by household. • For Terri Gifford, a self-employed mom in New Rochelle, N.Y., who renovates old homes, it wasn’t an easy decision. • Gifford and her husband, Peter, agreed with their 23-year-old son, Brian, that he’ll pay them $300 a month in rent. He has lived in their house for two years, since he graduated from Harvard University. At first he didn’t have a job, and now he works as a paralegal in a law firm, gearing up for his marriage in November and taking the Law School Admission Test in October. See RENT, Page 3R
PHOTO ILLUSTRATION BY ALIYA MOOD/GANNETT AND THINKSTOCK
If you’re looking for a house now, it probably will take a little longer to obtain a mortgage to buy it. The expected delay is due to a new federal rule that’s supposed to give consumers more protection when they’re making one of their biggest financial decisions. The “Know before you oweâ€? requirements went into effect last week. The biggest change for borrowers will be the three days they get to review all the final costs of their home loan before they sign. In the past, many borrowers didn’t see a final tally of their mortgage costs until the day they signed. “Even if you have bought and sold many homes in the past, if you applied for a loan today you would be surprised at the number of changes due to the new rule,â€? mortgage lender and expert Amy Swaney of Scottsdale’s Citywide Home Loans told me. Swaney, who recently was named one of Housing Wire’s Real Estate Finance’s Women of Influence for 2015, said there are new forms for mortgages that must be given to borrowers in “mandatory time framesâ€? and that have required “cooling offâ€? periods attached to them. Here’s what homebuyers taking out a mortgage now can expect: Âť A loan-estimate form three days after they apply for a mortgage that they must agree to before an appraisal is started. Âť A full-disclosure of their exact loan costs three days before they close. Âť A three-day delay on their closing, if they don’t receive their mortgage-cost disclosure form in time. Dean Wegner of Academy Mortgage has become an expert on these federal requirements, which officially are known as TRID, or the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rule. “This entire process is to slow down the finance portion of buying a home so that consumers can be informed of financing options,â€? said Wegner, who sits on the Arizona Department of Real Estate’s TRID Committee. “And so they can better underSee REAGOR, Page 3R
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