Mortgages Calculator Finally Adds Up With New Mortgage Law

A mortgages calculator is a popular way for many homebuyers to figure out which lending deal works out the best for their needs. But until the federal government fine-tuned Regulation Z, better known as the Truth in Lending Act, borrowers weren't necessarily getting all the information they needed to make an accurate decision. Tara-Nicholle Nelson of our sister site, WalletPop.com, explains how the new changes, which go into effect on April 1, will help protect consumers from hidden mortgage fees.


You get what you pay for, or so the saying goes. But consumer advocates have long bemoaned that the opposite is true in the world of mortgages.

Consumers choose between getting their loans through a mortgage broker, who can shop around with lots of lenders, or directly from the lenders themselves. The two options have historically had a long list of trade-offs in terms of customer service, speed and the number of programs each has to offer.

Unfortunately, some borrowers who thought they were paying for a mortgage broker to find them the best loan and lowest rate were unaware that the middle man (or woman) was also being paid another, often larger fee from the lender called the Yield Spread Premium (YSP). And the higher the rate and more onerous the loan terms were for the borrower, the higher that YSP would be. Can you say "backwards?"