Maryland PDF Docs
Homepage ➔ Fill Out Your Maryland Net Tangible Benefit Worksheet Template
Article Structure

Dos and Don'ts

When filling out the Maryland Net Tangible Benefit Worksheet form, consider the following guidelines:

  • Do type or print all information clearly to ensure readability.
  • Do review all sections of the form before submission to confirm accuracy.
  • Do ensure that all borrowers sign and date the form where indicated.
  • Do keep a copy of the completed form for your records.
  • Do consider all benefits of refinancing and initial any that apply.
  • Don't leave any sections blank; complete all required fields.
  • Don't rush through the process; take time to understand the terms of the new loan.
  • Don't provide false or misleading information on the form.
  • Don't forget to check for any additional documentation that may be required.
  • Don't submit the form without confirming that all borrowers have reviewed it.

Misconceptions

There are several misconceptions regarding the Maryland Net Tangible Benefit Worksheet form. Understanding these can help borrowers make informed decisions. Below are six common misconceptions:

  • The form is optional for lenders. Many believe that the worksheet is not mandatory. However, it is required by the Commissioner of Financial Regulation for compliance with specific regulations.
  • All loans automatically qualify for net tangible benefits. Some borrowers assume that any refinancing will provide a benefit. In reality, each situation must be evaluated individually to determine if the new loan offers a tangible benefit.
  • The worksheet guarantees loan approval. There is a misconception that completing the form ensures that a loan will be approved. Approval depends on various factors, including creditworthiness and lender policies.
  • Only interest rates matter. Many borrowers focus solely on interest rates when assessing benefits. However, other factors, such as loan terms and closing costs, are equally important in determining the overall benefit.
  • Signing the worksheet means you cannot change your mind. Some individuals feel that signing the form locks them into the new loan. This is not true; borrowers can still reconsider their options before finalizing the loan.
  • The worksheet is only for first-time homebuyers. A common belief is that this form is only relevant for first-time buyers. In fact, it applies to any borrower refinancing an existing mortgage, regardless of their experience.

By addressing these misconceptions, borrowers can better navigate the refinancing process and make choices that align with their financial goals.

Browse Other PDFs

What Is a Certificate of Compliance Maryland - Failure to submit this form correctly could result in remaining covered under insurance obligations.

Filing the Virginia Homeschool Letter of Intent is a crucial step for parents looking to embark on a homeschooling journey. This form serves not only as a notification to the local school division, but also as a commitment to provide a thorough educational experience outside of traditional classrooms. For those interested in learning more about the specific requirements and access to customizable templates, resources like https://homeschoolintent.com/editable-virginia-homeschool-letter-of-intent can be incredibly helpful.

Maryland New Hire Reporting - Collect all necessary employee identifiers, including the Social Security Number, to facilitate accurate reporting.

Real Estate Addendum Template - The intended use of the property may be restricted by zoning laws, which could impact your purchase if not addressed in the contract.

Key takeaways

When filling out the Maryland Net Tangible Benefit Worksheet, it is essential to keep the following key takeaways in mind:

  • Accuracy is crucial. All information must be typed or printed clearly to avoid misunderstandings.
  • Understand the costs. Borrowers should be aware of all costs associated with the new loan, including any changes in terms compared to existing loans.
  • Identify benefits. Each borrower should actively consider and initial the benefits that apply to them, such as lower interest rates or avoiding foreclosure.
  • Consider personal circumstances. The decision to refinance should take into account individual financial situations and how the new loan aligns with those circumstances.
  • Maintain records. The completed worksheet must be kept in the broker or lender's loan files as required by Maryland regulations.

Guidelines on Utilizing Maryland Net Tangible Benefit Worksheet

Filling out the Maryland Net Tangible Benefit Worksheet is an important step in the refinancing process. This form helps ensure that you understand the benefits and costs associated with your new mortgage loan. Follow these steps to complete the worksheet accurately.

  1. Begin by entering the Name of Borrower(s) at the top of the form. Provide both first and last names.
  2. Fill in the Mortgage Originator Name, along with their Employer and MD License #.
  3. Complete the Business Address, City, State, Zip code, Direct Tel #, Toll Free #, Fax, and Email for the mortgage originator.
  4. Next, provide the Lender Name and their MD License #.
  5. Fill in the Business Address, City, State, Zip code, Direct Tel #, Toll Free #, Fax, and Email for the lender.
  6. Then, provide the Broker Name and their MD License #.
  7. Complete the Business Address, City, State, Zip code, Direct Tel #, Toll Free #, Fax, and Email for the broker.
  8. Indicate the address of the home you are refinancing, including City and Zip code.
  9. Review the list of benefits and initial next to any that apply to your situation. Each borrower should do this.
  10. In the section about considering the terms of both the existing and new loans, confirm your understanding of the costs and benefits.
  11. Finally, both borrowers must sign and date the form at the bottom.

Form Preview Example

S T A T E O F M A R Y L A N D

COMMISSIONER OF FINANCIAL REGULATION

500 North Calvert Street, Suite 402

Baltimore, Maryland 21202

Net Tangible Benefit Worksheet

This Net Tangible Benefit Worksheet has been prescribed by the Commissioner of Financial Regulation in conformity with COMAR 09.03.06.20 and COMAR 09.03.09.04 (Duty of Care). Persons complying with these regulations shall use a form substantially similar to this form.

All information must be typed or printed.

This form shall be maintained in the broker/lender

licensee’s loan files pursuant to COMAR 09.03.06.04 “Records”.

Name of Borrower(s):

_______________________________________________

 

_______________________________________________

 

 

 

Mortgage

 

 

Originator

 

 

Name:

 

 

Employer:

 

 

MD License #:

 

 

Business

 

 

Address:

 

 

City:

State:

Zip code:

Direct Tel #:

 

Toll Free #:

Fax:

 

Email:

 

 

 

Lender Name:

 

 

MD License #:

 

 

Business

 

 

Address:

 

 

City:

State:

Zip code:

Direct Tel #:

 

Toll Free #:

Fax:

 

Email:

 

 

 

Broker Name:

 

 

MD License #:

 

 

Business

 

 

Address:

 

 

City:

State:

Zip code:

Direct Tel #:

 

Toll Free #:

Fax:

 

Email:

I/We, the undersigned borrower(s), plan to enter into a transaction which refinances one or more existing mortgage loans with a new mortgage loan secured by my/our home located at:

Address:

 

 

City:

State:

Zip code:

NTBW

Page 1

Rev. 11/12/08

I/We acknowledge that:

I/We understand the costs associated with the new loan;

The new loan may have different terms (including duration of term and rate of interest) than my/our existing loan(s); and

The new loan will provide a reasonable, tangible net benefit to me/us after taking into account the terms of both the new and existing loan(s), the cost of the new loan, and my/our particular circumstances.

By refinancing my/our existing loan(s), the following benefits apply to me/us (each borrower should initial any benefit that applies):

______

______ Obtaining a lower interest rate.

______

______ Obtaining a lower monthly payment, including principal, interest, taxes, and insurance.

______

______ Obtaining a shorter amortization schedule.

______

______ Changing from an adjustable rate to a fixed rate.

______

______ Eliminating a negative amortization feature.

______

______ Eliminating a balloon payment feature.

______

______ Receiving cash-out from the new loan in an amount greater than all closing costs incurred in

 

connection with the loan.

______

______ Avoiding foreclosure.

______

______ Eliminating private mortgage insurance.

______

______ Consolidating other existing loans into a new mortgage loan.

______

______ Other (please specify): ________________________________________________________

 

__________________________________________________________________________

I/We have considered the terms of both the existing and new loans, the cost of the new loan, and my/our personal circumstances. I/We believe the overall benefits of the new loan make the new loan beneficial to me/us for the reason or reasons identified above. By signing below, I/we certify that I/we have read and understand this Net Tangible Benefits Worksheet.

Borrower: ____________________________________________

Date: _____________________

Borrower: ____________________________________________

Date: _____________________

 

NTBW

 

Page 2

 

Rev. 11/12/08

Common mistakes

  1. Incomplete Borrower Information: Failing to provide all required details, such as names, addresses, and contact information, can lead to delays in processing the form.

  2. Missing Signatures: Not signing the form or having both borrowers sign can invalidate the worksheet and hinder the loan process.

  3. Incorrect Loan Information: Providing inaccurate details about the existing or new loan, such as interest rates or loan amounts, can create confusion and affect eligibility.

  4. Neglecting to Initial Benefits: Not initialing the applicable benefits can imply that the borrower does not acknowledge the advantages of refinancing.

  5. Ignoring Costs: Failing to consider all associated costs of the new loan, including closing costs, may lead to a misunderstanding of the net tangible benefit.

  6. Not Evaluating Personal Circumstances: Overlooking individual financial situations can result in an unsuitable loan choice that does not meet the borrower’s needs.

  7. Using Handwritten Information: Writing on the form instead of typing can lead to legibility issues, making it difficult for lenders to process the information.

  8. Failing to Keep a Copy: Not retaining a copy of the completed worksheet for personal records can lead to challenges in tracking the loan process.

  9. Not Reviewing Before Submission: Submitting the form without a thorough review can result in overlooked errors that may cause delays.

  10. Disregarding Regulatory Requirements: Not adhering to the prescribed format and regulations outlined by the Maryland Commissioner of Financial Regulation can lead to rejection of the form.

Free Maryland Net Tangible Benefit Worksheet PDF

Learn More on This Form

What is the Maryland Net Tangible Benefit Worksheet?

The Maryland Net Tangible Benefit Worksheet is a form required by the Commissioner of Financial Regulation. It helps borrowers assess the benefits of refinancing their mortgage loans. This worksheet ensures that borrowers understand the potential advantages and costs associated with taking out a new loan compared to their existing loans.

Who needs to use this worksheet?

Anyone considering refinancing their mortgage in Maryland should use this worksheet. It is particularly important for borrowers who want to ensure that they are making a financially sound decision. Mortgage originators and lenders are also responsible for providing this form to borrowers as part of the refinancing process.

What information is required on the worksheet?

The worksheet requires several pieces of information, including the names of the borrowers, the mortgage originator’s details, and the lender’s information. Additionally, borrowers must provide specifics about the property being refinanced and indicate which benefits apply to their situation.

What are some examples of benefits listed on the worksheet?

There are various benefits that borrowers can select on the worksheet. These include obtaining a lower interest rate, reducing monthly payments, switching from an adjustable rate to a fixed rate, and eliminating private mortgage insurance. Each borrower can choose the benefits that apply to their refinancing situation.

Why is it important to understand the costs associated with a new loan?

Understanding the costs associated with a new loan is crucial because it helps borrowers make informed decisions. Refinancing can come with fees, closing costs, and potentially higher interest rates. By evaluating these costs against the benefits, borrowers can determine if refinancing is truly advantageous for their financial circumstances.

How does this worksheet ensure compliance with regulations?

The worksheet is prescribed in accordance with specific Maryland regulations (COMAR). By using this form, lenders and borrowers can demonstrate that they have fulfilled their duty of care, ensuring that the refinancing process is transparent and that borrowers are fully informed about their options.

What should borrowers do after completing the worksheet?

After completing the worksheet, borrowers should review it carefully to ensure all information is accurate and that they fully understand the benefits and costs involved. Signing the worksheet indicates that they have read and comprehended its contents. It should then be kept in the lender's loan files as part of the official documentation.

Can borrowers add additional benefits not listed on the worksheet?

Yes, borrowers can specify additional benefits in the section provided on the worksheet. This allows for a more personalized assessment of their refinancing situation, ensuring that all relevant advantages are considered when making a decision.

What happens if a borrower does not believe there is a net tangible benefit?

If a borrower does not believe there is a net tangible benefit to refinancing, they should not proceed with the new loan. It is essential for borrowers to feel confident that refinancing will improve their financial situation. They may want to explore other options or consult with a financial advisor for guidance.