Did you ever wonder what that long sheet of paper the lawyer hands you when you sign for your mortgage is? It says “Standard Charge Terms” on the top and has lots of legal jargon and fine print that just boggles the mind!
Here’s what it means….
This document contains the rules by which the financial institution is loaning you the money and what yours and their obligations are. There are such things as,
– how they expect to be paid
– what happens if you don’t pay
– what yours and their rights are if you don’t pay 
– power of sale rules
– any fees for NSF payments etc.
– how you can take advantage of prepayment privileges
– who pays the taxes
– family law obligations
– what happens if you want to sell the property
– terms by which the mortgage is transferable or assumable
– who pays the taxes
– what if the property is a condominium
– you must comply with the law in your use of the property
And a whole lot more. Standard charge terms are generally “standard” throughout the industry but there can be some differences from lender to lender, such as how much you can prepay at a time and when.
So, don’t just sign it to get things over with, give it at least a look over to make sure you understand what your obligations are and how the lender is obligated to you.
