Fill a Valid Maryland Ntbw Template

The Maryland Net Tangible Benefit Worksheet is a form required by the Commissioner of Financial Regulation to ensure that borrowers understand the benefits of refinancing their mortgage loans. This worksheet helps individuals evaluate whether a new mortgage will provide a tangible advantage when compared to their existing loans. To begin the process, fill out the form by clicking the button below.

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The Maryland Net Tangible Benefit Worksheet, often referred to as the NTBW form, plays a crucial role in the refinancing process for homeowners in the state. This form, mandated by the Commissioner of Financial Regulation, ensures that borrowers understand the implications of refinancing their existing mortgage loans. It serves as a tool for both borrowers and lenders to evaluate the tangible benefits that a new mortgage might provide. Key elements of the form include the identification of the borrower(s), the mortgage originator, and the lender, alongside a detailed breakdown of potential benefits from refinancing. Borrowers must acknowledge their understanding of the costs associated with the new loan, including any changes in terms and rates compared to their existing loans. The form highlights various benefits, such as lower interest rates, reduced monthly payments, and the elimination of certain loan features like private mortgage insurance or balloon payments. By requiring borrowers to consider their personal circumstances and the overall advantages of the new loan, the NTBW form promotes informed decision-making in the refinancing process.

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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

Misconceptions

Understanding the Maryland Net Tangible Benefit (NTBW) form is essential for borrowers considering refinancing their mortgages. However, several misconceptions can lead to confusion. Here are nine common misconceptions about the NTBW form, along with clarifications to help you navigate this important document.

The NTBW form is optional for all borrowers. Many believe that the NTBW form is optional, but it is actually required by Maryland law for certain refinancing transactions. Lenders must use this form to demonstrate that the refinancing provides a net tangible benefit to the borrower.
Only the lender needs to complete the NTBW form. Some think that only the lender is responsible for filling out the NTBW form. In reality, both the borrower and the lender must acknowledge and understand the information presented in the form.
The NTBW form guarantees approval for refinancing. A common misconception is that completing the NTBW form guarantees loan approval. The form serves to document the benefits of refinancing, but approval still depends on other factors such as creditworthiness and lender policies.
The NTBW form only considers interest rates. Many borrowers assume that the form focuses solely on interest rates. However, it takes into account various factors, including monthly payments, loan terms, and specific borrower circumstances, to assess overall benefits.
All lenders use the same version of the NTBW form. Some believe that there is a single, standardized version of the NTBW form. While the form must be similar to the prescribed version, lenders may have their own formats as long as they comply with state regulations.
Completing the NTBW form is a quick process. Many borrowers underestimate the time needed to fill out the NTBW form. It requires careful consideration of both existing and new loan terms, which can take longer than expected.
The NTBW form is only for homeowners in financial distress. Some think that the NTBW form is only relevant for those facing foreclosure or financial difficulties. In fact, it applies to any borrower considering refinancing, regardless of their financial situation.
Submitting the NTBW form is the last step in the refinancing process. Many borrowers believe that once they submit the NTBW form, the refinancing process is complete. In reality, it is just one part of a larger process that includes underwriting and final loan approval.
Signing the NTBW form means you cannot change your mind. Some borrowers worry that signing the NTBW form locks them into the refinancing decision. However, signing the form does not prevent you from reconsidering your options before finalizing the loan.

By dispelling these misconceptions, borrowers can approach the Maryland NTBW form with a clearer understanding, ensuring they make informed decisions regarding their mortgage refinancing options.

Common mistakes

Filling out the Maryland Net Tangible Benefit (NTBW) form can be a straightforward process, but many people make common mistakes that can lead to complications. One frequent error is not providing complete information. Each section of the form requires specific details, such as names, addresses, and license numbers. Omitting any of this information can delay processing and create confusion.

Another mistake is failing to sign the form. Both borrowers must sign and date the document to validate it. Without these signatures, the form is incomplete and cannot be accepted. It’s essential to double-check that all required signatures are present before submitting.

Some individuals overlook the importance of initialing the benefits that apply. Each borrower should carefully read through the benefits listed and initial next to those that are relevant. Neglecting to do so can lead to misunderstandings about the benefits being claimed, which may affect the loan approval process.

In addition, not understanding the terms of the new loan is a common pitfall. Borrowers should take the time to comprehend the implications of refinancing, including changes in interest rates and payment schedules. This understanding is crucial for accurately assessing the net tangible benefits.

Another mistake is failing to consider personal circumstances. The form requires borrowers to reflect on their unique situations when evaluating the benefits of the new loan. Ignoring this aspect can lead to poor financial decisions that may not serve the borrowers' best interests.

Many people also submit the form without reviewing it thoroughly. Typos or incorrect information can cause significant delays. A careful review can catch these errors before they become an issue. It’s wise to take a moment to ensure everything is accurate and complete.

Additionally, using outdated versions of the form can be problematic. The NTBW form may be updated periodically, and using an old version could result in compliance issues. Always ensure you have the most current version of the form before filling it out.

Another common error involves not keeping a copy of the completed form. It’s essential for borrowers to retain a copy for their records. This documentation can be useful for future reference or if any questions arise regarding the refinancing process.

Lastly, not seeking help when needed can lead to mistakes. If there’s uncertainty about how to fill out the form or what certain terms mean, reaching out for assistance can clarify things. It’s better to ask questions than to risk submitting an incorrect form.

Key takeaways

When filling out and using the Maryland Net Tangible Benefit (NTBW) form, keep these key takeaways in mind:

Purpose of the Form: The NTBW form is designed to ensure that borrowers understand the tangible benefits of refinancing their mortgage loans.
Compliance: This form must be used in accordance with specific regulations outlined by the Commissioner of Financial Regulation.
Typed or Printed: All information on the form must be typed or printed clearly to avoid any misunderstandings.
Loan File Requirement: Lenders are required to maintain this form in their loan files as part of their record-keeping obligations.
Borrower Information: Accurate details about the borrower(s), including names and contact information, must be provided.
Understanding Costs: Borrowers must acknowledge their understanding of the costs associated with the new loan and how it compares to existing loans.
Benefits Section: Each borrower should initial the benefits that apply to them, ensuring they recognize the advantages of the new loan.
Certification: By signing the form, borrowers certify that they have read and understood the contents of the NTBW, confirming their agreement with the stated benefits.

Documents used along the form

When navigating the refinancing process in Maryland, several forms and documents complement the Net Tangible Benefit Worksheet (NTBW). Each of these documents serves a unique purpose, providing clarity and ensuring compliance with state regulations. Understanding these forms can help borrowers make informed decisions and streamline their refinancing experience.

Loan Estimate (LE): This document provides borrowers with a detailed overview of the loan terms, estimated monthly payments, and closing costs. It helps borrowers compare different loan offers from various lenders.
Closing Disclosure (CD): Issued before the closing of a mortgage, this form outlines the final terms and costs of the loan. Borrowers must receive it at least three days prior to closing to ensure they understand their financial obligations.
Borrower’s Certification and Authorization: This document allows lenders to verify the borrower’s financial information and credit history. It is crucial for assessing the borrower’s eligibility for the loan.
Loan Application (1003): The standard form used to apply for a mortgage loan. It collects essential information about the borrower’s financial situation, employment, and the property being financed.
Title Insurance Policy: This document protects the lender and borrower from potential issues related to property ownership, such as liens or disputes. It ensures that the title is clear before the loan is finalized.
Appraisal Report: An assessment of the property’s value conducted by a licensed appraiser. This report helps the lender determine the amount they are willing to lend based on the property’s market value.
Debt-to-Income (DTI) Calculation: This calculation assesses the borrower’s ability to manage monthly payments and repay debts. It is an essential factor in determining loan eligibility.
Good Faith Estimate (GFE): Although now largely replaced by the Loan Estimate, this document was previously used to provide borrowers with an estimate of the costs associated with a mortgage loan.
Power of Attorney (POA): In cases where the borrower cannot be present at closing, a POA allows another individual to sign documents on their behalf, ensuring the transaction can proceed smoothly.

Familiarizing oneself with these documents can enhance the refinancing process, ensuring that borrowers are well-prepared and informed. Each form plays a vital role in protecting the interests of all parties involved, ultimately leading to a more successful and beneficial refinancing experience.

Similar forms

The Maryland Ntbw form, or Net Tangible Benefit Worksheet, shares similarities with the Good Faith Estimate (GFE). The GFE is a document provided by lenders that outlines the estimated costs associated with a mortgage loan. Like the Ntbw form, it aims to ensure that borrowers have a clear understanding of the financial implications of their loan. Both documents emphasize transparency and help borrowers make informed decisions by detailing costs, terms, and potential benefits associated with refinancing or obtaining a new mortgage. The GFE, however, focuses more on upfront costs, while the Ntbw form centers on the tangible benefits of refinancing.

Another document that resembles the Maryland Ntbw form is the Loan Estimate (LE). Introduced by the Consumer Financial Protection Bureau, the LE provides borrowers with a clearer picture of the costs involved in a mortgage loan. Similar to the Ntbw, the LE is designed to help borrowers compare different loan offers and understand the financial impact of their choices. Both forms require lenders to disclose key information, ensuring borrowers can assess whether a new loan is beneficial. The Loan Estimate is particularly useful in the early stages of the mortgage process, while the Ntbw form is more focused on the justification for refinancing existing loans.

In addition to understanding the financial documents associated with mortgage loans, it is equally important for firearm purchasers to be well-informed about legal transfers in their state, such as the Bill of Sale for a Gun, which ensures that the transfer of ownership is documented and recognized legally.

The Closing Disclosure (CD) also bears similarities to the Maryland Ntbw form. The CD is provided to borrowers three days before closing and outlines the final terms and costs of the mortgage. Like the Ntbw, it serves to protect consumers by ensuring they are fully informed about their financial commitments. Both documents require detailed breakdowns of costs, allowing borrowers to understand the total expenses associated with their loans. While the Ntbw focuses on the benefits of refinancing, the CD provides a comprehensive summary of what the borrower will ultimately pay at closing.

The Borrower’s Certification and Authorization form is another document that aligns with the purpose of the Maryland Ntbw form. This form is used to verify the borrower’s identity and financial information during the loan process. Similar to the Ntbw, it ensures that borrowers are aware of their responsibilities and the implications of their financial decisions. Both documents aim to facilitate transparency and protect the interests of the borrower, although the Borrower’s Certification primarily focuses on the verification process rather than the benefits of refinancing.

Additionally, the Truth in Lending Act (TILA) disclosure is comparable to the Maryland Ntbw form. TILA requires lenders to provide borrowers with key information about the cost of borrowing, including the annual percentage rate (APR) and total finance charges. Both documents are designed to promote informed decision-making by ensuring borrowers understand the financial terms of their loans. While the TILA disclosure focuses on the cost of borrowing, the Ntbw form emphasizes the tangible benefits that refinancing may provide, creating a comprehensive understanding of the borrower’s financial landscape.

Lastly, the Mortgage Loan Originator (MLO) disclosure is similar to the Maryland Ntbw form in that it provides borrowers with information about the mortgage loan originator’s compensation and potential conflicts of interest. This disclosure helps borrowers understand who is involved in their loan process and how those individuals are compensated. Both the MLO disclosure and the Ntbw form aim to enhance transparency and protect the borrower’s interests. While the MLO disclosure centers on the originator's role and compensation, the Ntbw form focuses on the benefits of refinancing, contributing to a well-rounded view of the mortgage transaction.