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WASHINGTON – May 23, 2011 – Borrowers may soon have an easier time sorting out all of those key details and expenses associated with their mortgage as well as more easily compare loan terms when trying to shop around for a mortgage that works best for them.

The Consumer Financial Protection Bureau recently unveiled its “Know Before You Owe” project and is seeking public feedback on two “consumer-friendly” prototype mortgage disclosure forms that will replace the current required disclosure forms by July 2012.

The prototype forms itemize key costs associated with the mortgage, including total closing costs, monthly payments and projected monthly payments for future years. The forms also provide more details about the mortgage’s terms than the current form does.

The bureau is running tests on the prototype forms as well as seeking public comment. Review the sample forms and provide feedback here.

Source: “Mortgage Disclosures Getting Another Revamp,” Associated Press (May 18, 2011)