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Dos and Don'ts
When filling out the Maryland Net Tangible Benefit (NTBW) form, there are important dos and don’ts to keep in mind. These tips will help ensure that the process goes smoothly and that all necessary information is accurately provided.
- Do type or print all information clearly. This ensures that your details are legible and reduces the chance of errors.
- Do provide complete information for all required fields. Missing details can delay the processing of your application.
- Do review the form thoroughly before submitting. Make sure that all sections are filled out correctly.
- Do keep a copy of the completed form for your records. This can be helpful for future reference.
- Don’t leave any fields blank unless specified. Each section is important for evaluating your loan situation.
- Don’t use abbreviations or shorthand. Clarity is key, so write out all terms fully.
- Don’t forget to sign and date the form. Your signature is necessary to validate the information provided.
Misconceptions
Understanding the Maryland Net Tangible Benefit (NTBW) form is crucial for borrowers considering refinancing their mortgages. Unfortunately, several misconceptions can lead to confusion. Below is a list of common misunderstandings, along with clarifications to help you navigate this important document.
- The NTBW form is optional. Many believe that completing the NTBW form is optional. In reality, it is a required document that must be filled out to comply with Maryland regulations when refinancing.
- Only lenders need to fill out the NTBW form. This is not true. Both borrowers and lenders must participate in completing the form to ensure that all relevant information is accurately captured.
- The NTBW form guarantees loan approval. While the form helps outline the benefits of refinancing, it does not guarantee that a loan will be approved. Approval depends on various factors, including creditworthiness and lender policies.
- All borrowers will benefit from refinancing. Not every borrower will find refinancing beneficial. Each individual's financial situation is unique, and the NTBW form helps borrowers evaluate their specific circumstances.
- The NTBW form only considers interest rates. This form takes into account various factors, such as monthly payments, loan terms, and other financial considerations. It provides a comprehensive view of the potential benefits of refinancing.
- Once the NTBW form is signed, it cannot be changed. Borrowers can discuss their concerns and make adjustments before finalizing the loan. The form is a starting point for discussion, not a final agreement.
- Private mortgage insurance (PMI) is not a factor in refinancing. PMI can significantly impact overall costs. The NTBW form allows borrowers to consider eliminating PMI as a potential benefit of refinancing.
- Refinancing is always the best option. While refinancing can offer benefits, it may not always be the best choice for every borrower. The NTBW form encourages careful consideration of all options.
- Only financial experts can understand the NTBW form. The form is designed to be straightforward. Borrowers are encouraged to ask questions and seek clarification to ensure they fully understand its implications.
- The NTBW form is only relevant for first-time homebuyers. This misconception overlooks that the NTBW form is applicable to anyone refinancing a mortgage, regardless of their previous experience with home loans.
Addressing these misconceptions can empower borrowers to make informed decisions about their refinancing options. It is essential to approach the NTBW form with clarity and confidence, ensuring that you fully understand the implications of your choices.
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Key takeaways
When filling out the Maryland Net Tangible Benefit (NTBW) form, there are several important points to keep in mind. This form is crucial for ensuring that borrowers understand the benefits of refinancing their mortgage loans. Here are some key takeaways:
- The NTBW form is required by the Maryland Commissioner of Financial Regulation and follows specific regulations.
- All information on the form must be typed or printed clearly for accuracy and legibility.
- It is essential to maintain this form in the broker or lender’s loan files as mandated by Maryland regulations.
- Borrowers must acknowledge that they understand the costs and terms associated with the new loan compared to their existing loans.
- Each borrower should indicate which benefits apply to them by initialing the relevant sections on the form.
- Common benefits include obtaining a lower interest rate, reducing monthly payments, or switching from an adjustable rate to a fixed rate.
- Borrowers should consider their personal circumstances and the overall advantages of the new loan before signing the form.
- Signing the NTBW form confirms that borrowers have read and understood the information provided, which is vital for informed decision-making.
Guidelines on Utilizing Maryland Ntbw
Completing the Maryland Net Tangible Benefit Worksheet is a crucial step in the refinancing process. Follow these steps carefully to ensure that all necessary information is accurately provided.
- Begin by entering the Name of Borrower(s) in the designated space.
- Fill in the Mortgage Originator Name and the Employer information.
- Provide the MD License # for the mortgage originator.
- Complete the Business Address, including City, State, and Zip Code.
- Enter the Direct Tel #, Toll Free #, Fax, and Email for the mortgage originator.
- Next, fill in the Lender Name and the corresponding MD License #.
- Complete the Business Address for the lender, including City, State, and Zip Code.
- Provide the Direct Tel #, Toll Free #, Fax, and Email for the lender.
- Now, enter the Broker Name and the MD License #.
- Fill in the Business Address for the broker, including City, State, and Zip Code.
- Complete the Direct Tel #, Toll Free #, Fax, and Email for the broker.
- Indicate the Address of the home being refinanced, along with City, State, and Zip Code.
- Review the benefits listed and have each borrower initial any benefits that apply.
- After reviewing the terms of both the existing and new loans, sign and date the form as the borrower.
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): |
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Mortgage |
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Originator |
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Business |
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Lender Name: |
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MD License #: |
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Business |
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Direct Tel #: |
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Fax: |
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Email: |
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Broker Name: |
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MD License #: |
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Business |
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Address: |
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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: |
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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):
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______ Obtaining a lower interest rate. |
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______ Obtaining a lower monthly payment, including principal, interest, taxes, and insurance. |
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______ Obtaining a shorter amortization schedule. |
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______ Changing from an adjustable rate to a fixed rate. |
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______ Eliminating a negative amortization feature. |
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______ Eliminating a balloon payment feature. |
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______ Receiving |
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connection with the loan. |
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______ Avoiding foreclosure. |
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______ Eliminating private mortgage insurance. |
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______ Consolidating other existing loans into a new mortgage loan. |
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______ Other (please specify): ________________________________________________________ |
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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: _____________________ |
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NTBW |
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Rev. 11/12/08 |
Common mistakes
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Incomplete Information: Failing to fill out all required fields can lead to delays. Each section of the form must be completed, including names, addresses, and contact details for all parties involved.
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Missing Signatures: Both borrowers must sign the form. A missing signature can invalidate the document, causing complications in the loan process.
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Incorrect Loan Details: Providing inaccurate information about existing loans or the new loan can mislead lenders. Ensure that all terms, including interest rates and loan amounts, are correctly stated.
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Neglecting to Initial Benefits: Borrowers must initial all applicable benefits. Failing to do so may suggest that the borrower is unaware of the benefits, which could impact the evaluation of the loan.
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Not Reviewing the Form: Skipping a final review before submission can lead to overlooked errors. It is essential to double-check all entries for accuracy and completeness.
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 is designed for borrowers who are refinancing existing mortgage loans. The form helps ensure that borrowers understand the costs and benefits associated with the new loan compared to their current loan. Compliance with specific regulations is necessary when using this form.
Who must use the Net Tangible Benefit Worksheet?
This form must be used by lenders and brokers who are facilitating mortgage refinancing in Maryland. It is intended to protect borrowers by ensuring that they receive a net tangible benefit from refinancing their loans. The form should be maintained in the loan files of the broker or lender as required by state regulations.
What information is required on the worksheet?
The worksheet requires various details, including the names of the borrowers, the mortgage originator, and the lender. It also requires the addresses and contact information for all parties involved. Additionally, borrowers must indicate the specific benefits they expect to gain from refinancing.
What does "net tangible benefit" mean?
A net tangible benefit refers to the advantages that a borrower receives from refinancing a mortgage. This can include a lower interest rate, reduced monthly payments, or the elimination of certain loan features. The worksheet prompts borrowers to consider how the new loan will benefit them compared to their existing loan.
How does the worksheet help borrowers?
The worksheet assists borrowers in evaluating the potential advantages of refinancing. By outlining the costs and benefits, it encourages borrowers to make informed decisions about whether to proceed with a new loan. It serves as a tool for transparency in the refinancing process.
What should borrowers consider before signing the worksheet?
Before signing, borrowers should carefully review the terms of both their existing loan and the new loan. They should assess the costs associated with the new loan and consider their personal financial situation. Understanding the potential benefits and drawbacks is crucial for making an informed choice.
Can borrowers customize the worksheet?
While the worksheet must conform to specific regulations, borrowers can specify additional benefits that may apply to their situation. This allows for some customization based on individual circumstances. However, the core structure and requirements of the form must be maintained.
Is the Net Tangible Benefit Worksheet legally binding?
The worksheet is not a legally binding contract. Instead, it serves as a disclosure tool to inform borrowers about the refinancing process. By signing the worksheet, borrowers acknowledge that they have read and understood the information provided, but it does not obligate them to proceed with the loan.
How long should lenders keep the worksheet on file?
Lenders are required to maintain the worksheet in their loan files as part of compliance with Maryland regulations. The specific duration for retaining these records may vary, but it is generally advisable to keep them for several years in case of audits or inquiries.
Where can borrowers obtain the Net Tangible Benefit Worksheet?
Borrowers can typically obtain the Net Tangible Benefit Worksheet from their lender or mortgage broker. Additionally, it may be available on the Maryland Commissioner of Financial Regulation's website or through other official state resources.