Mortgage Disclosure Document

A mortgage disclosure document is one which contains all the outlines of the terms and conditions of a mortgage deal between two parties. It is a very important document for both parties since all the salient details of the deal are contained in the document itself.

Sample Mortgage Disclosure Document

This is to inform Mr. Jason Rogers of 23 Mapleton Avenue, New York [henceforth referred to as the mortgagee] that the dates of commencement and termination of his mortgage loan on the property mentioned above for an amount of 10 million USD from us, APF Financers Pvt. Ltd. [henceforth referred to as the mortgagers] are 12th of June 2012 and 11th of June 2016 respectively. Thus the mortgage period is of duration of 4 years. This document is a Truth in Lending Disclosure Statement and must be carefully understood by both parties concerned.

The APR or annual percentage rate of the loan is 4.6% per annum, which is calculated based on compound interest on the principle sum of the loan which is 10 million USD. The mortgagee is required to pay a monthly amount of 300 USD for the period of 4 years mentioned above. Apart from this, the mortgagee also has to pay an amount of 1000 USD as refundable deposit which will be given back to his after the mortgage deal has been honorably discharged by him.

In case of late discharge of debt, an additional rate of interest of 2% simple interest per annum will be levied on the principle amount of 10 million USD. In case of non-closure of debt within 1st June 2013, the mortgage will be considered to be lapsed and the property will be seized by our firm, irrespective of the amount of money paid by the mortgagee over the years. This money will not be returned and will not balance against the seizure of the property.

Signature of mortgagee: ___________________________

Signature of mortgager: ___________________________

Signature of witness: ______________________________

Posted in Mortgage Documents