Mortgage Dictionary

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Upfront Mortgage Lender

Mortgage abuses persist because most lenders do not disclose mortgage costs, making it difficult for consumers to negotiate a fair price. The solution: transparency.

Jack Guttentag, a retired finance professor, has identified a group of lenders and brokers who will disclose a mortgage's actual cost in writing and in advance. The lenders are called Upfront Mortgage Lenders, and the brokers are called Upfront Mortgage Brokers.

You can find a list of Upfront Mortgage Lenders and Upfront Mortgage Brokers on Guttentag's helpful website: www.mtgprofessor.com.

Compared to a traditional lender, the main advantage of working with an Upfront Mortgage Lender is transparency - clear explanations of all costs and fees - and fewer opportunities for mortgage tricks. Note, however, that Upfront Mortgage Lenders do not guarantee lower prices or better service than traditional lenders. You need to check that out for yourself.

See also:   How to Choose a Mortgage Lender