In the quest for a more financially sound future, Maryland residents considering refinancing their mortgage may encounter the Net Tangible Benefit Worksheet (NTBW), a crucial document endorsed by the Commissioner of Financial Regulation. This worksheet plays a pivotal role in safeguarding homeowners by ensuring that refinancing offers a genuine advantage, in adherence to state regulations under COMAR 09.03.06.20 and COMAR 09.03.09.04. Required to be filled out with precision and maintained in the loan files, this form demands attention to detail, including personal and lender information, to facilitate a thorough examination of the refinancing proposal. Specifically designed to assist borrowers in understanding the implications of a new mortgage compared to their existing one, it highlights various benefits such as lower interest rates, reduced payment terms, or even cash-out opportunities that exceed closing costs. By meticulously outlining the potential advantages and encouraging a careful consideration of both current and proposed loan terms against personal circumstances, the NTBW underscores the commitment of Maryland's financial regulatory body to ensure that refinancing moves are in the homeowner's best interest. Through this process, borrowers are empowered to make informed decisions, confident in the knowledge that their financial wellbeing is protected.
| Question | Answer |
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| Form Name | Maryland Form Ntbw |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | licensees, benefit, Calvert, Originator |
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”.
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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:
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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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______ 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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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.
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NTBW |
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Rev. 11/12/08 |