Beautiful New Home Only $1500 Per Month-Opps Did I Say That?

By
Real Estate Agent with Integrity Real Estate Group
http://actvra.in/gCq

House with Interest RatesYou've just listed a new home and you want buyer's to know how affordable the monthly payment will be.  You pull out your handy dandy calculator and do an estimate of the monthly payment.  You are excited to figure out that the monthly payment would be less than the average rent in your area.  You quickly add a line to your advertising that says "Own this home for only $1500 per month." 

Did you know you may have just violated the Truth and Lending Laws and Regulation Z?  What seems like a very simple idea could land you in very hot water.  Regulation Z in simple terms says if you use any "trigger" term such as an amount of a down payment, monthly payment, number of payments or an interest rate you now must disclose all of the following:

The amount of the down payment or percentage of down payment
Term of repayment
APR and if it will change during the term of the loan then you must include that information as well



Violation of the Truth in Lending laws aren't cheap.  Besides requiring you to stop advertising a court could require:

Monetary fines of up to $5000
Criminal prosecution and up to 1 year of jail time
Civil penalities between $100 to $1000
Truth and Lending Law Penalties
Court Costs
Attorney's Fees

What seemed like such a great idea to bring attention to the affordability of buying a new home suddenly has more significance than you thought.   If you are considering advertising a monthly payment on your latest listing call your favorite lender and ask them to do a full rate sheet for you.  I don't know about you but I don't think stripes are very flattering except on a zebra.



 

 

 

 



Posted by

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

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Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Don MacLean 08/12/2011 11:48 AM
  2. Bridget McGee 08/12/2011 12:28 PM
  3. Steven Cook 08/12/2011 02:46 PM
Topic:
Lending / Financial
Groups:
Addicted to Active Rain
BananaTude
Bartender, Make it a Double
RE/MAX Active Rain Bloggers
"Whacked"!!!
Tags:
truth in lending laws
regulation z
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Ellie-you can say cheaper than renting you just can't add a payment.  Or have your lender give you a rate sheet to attach.

Aug 13, 2011 08:13 AM #37
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Phillip-perfect!

Aug 13, 2011 08:14 AM #38
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Than-thanks for adding that piece of information. 

Aug 13, 2011 08:14 AM #39
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Susan-yes Phillip hit the nail on the head.

Aug 13, 2011 08:15 AM #40
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Jeff-I would hope that a lender would know better. 

Aug 13, 2011 08:15 AM #41
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Sandy-congratulations on understanding the rules of the road when it comes to financial information on your listings.

Aug 13, 2011 08:18 AM #42
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Scott-these are wise words "be the source of the source."  CRS classes are among the best.

Aug 13, 2011 08:19 AM #43
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Gail-just a word to the wise every once in awhile helps keep the lawyers away.

Aug 13, 2011 08:20 AM #44
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Katie-amazing the number of ads you read from agents are in violation of this rule.

Aug 13, 2011 08:20 AM #45
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Scott-you may want to give them a heads up to watch out.

Aug 13, 2011 08:21 AM #46
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Cindy Jones
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Steven-CE only helps if people actually pay attention to what is being said.

Aug 13, 2011 08:21 AM #47
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Chris Ann-there are so many factors that go into a mortgage rate that you won't know until you fill out an application and are approved what your rate may be.

Aug 13, 2011 08:22 AM #48
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Margaret-yes the whole APR issue is confusing but I'm going to stay away from quoting the rates and let the lender handle it.

Aug 13, 2011 08:23 AM #49
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Kay-absolutely.  I am not a lender and don't want to be.

Aug 13, 2011 08:24 AM #50
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Pat-I would think it has.  The good news is that the price of a hotel on Park Place has gone down though.

Aug 13, 2011 08:24 AM #51
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Melissa-it's amazing how quickly the things we learn go out the window when we are advertising a new property.

Aug 13, 2011 08:25 AM #52
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Christine-from what I recall anytime you mention a downpayment then you must go through the full disclosure.  I'm not sure if I would even say Zero down. 

Aug 13, 2011 08:26 AM #53
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Gretchen-I can run a quick mortgage payment estimate but I'm not going to put it in print on a flyer.

Aug 13, 2011 08:27 AM #54
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Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie
Charles Rutenberg Realty - Palm Harbor, FL
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Cindy - great reminder for agents to be careful what they write in their excitement! Yes, that could be a real nail in the coffin!

Aug 14, 2011 08:43 AM #55
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Barbara Jo-just read today a blog by an agent who mentioned rates.  I'm just going to follow what our association attorney suggested and stay away from quoting rates and talk in general terms.

Aug 15, 2011 08:27 AM #56
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