or if you’re looking to refinance your current loan, a new federal disclosure, the Loan Estimate (LE) will most likely come into play.
eLend, a division of American Financial Resources that provides home financing options to first time and existing homeowners, recently announced the launch of their new mobile loan estimate comparison tool “Rate My Rate.”
According to a company press release, the new tool is designed to support the Consumer Financial Protection Bureau’s (CFPB) new disclosure regulations. The “Rate My Rate” tool allows borrowers to compare loans from lenders across the country, in addition to offerings from eLend, so that they may chose the loan that best aligns with their needs.
"The CFPB redeveloped this whole process and these disclosures to get consumers to compare their estimates with other lenders. However, consumers still aren't making this a priority and many don't undergo this process at all," said Robert Pieklo, chief strategy officer and EVP of eLend. "We developed Rate My Rate to highlight the importance of these government-mandated processes and provide a simple, easy-to-use tool that empowers consumers to make smart decisions regarding their home financing and ensure they are getting the best possible deal."
eLend’s new tool utilizes patent-pending technology that reads information off of a prospective borrower’s current loan estimates and feeds it through a pricing engine that compares estimates across five categories: loan costs over 5 years, principal paid in five years, APR, TIP and total loan costs.
"We make it a priority to ensure consumers are taking action to get a second opinion and don't take any one estimate at face value," Pieklo said. "You wouldn't take a serious diagnosis from a doctor, or invest in the market without getting a second opinion. Why would you risk getting a mortgage without shopping around?"
If you are on the market for a