Home buyers could save an average of $700 in closing costs if a new government proposal to make lenders provide easier-to-understand mortgage information is approved.

The proposal would change the way "good faith estimates" -- documents mortgage providers give prospective buyers that list closing costs and other fees associated with getting a mortgage -- are handled, the Associated Press reports.

Currently, good faith estimate forms vary greatly from lender to lender. The new, mandatory version would require them to use the same form. As with the current versions, it would include information about:

• Loan terms, interest rates and monthly payments.
• Whether the interest rate and principal balance could increase over time -- and by how much.
• Whether the loan has a prepayment penalty or balloon payment.
• Settlement costs.

The changes would make it easier for buyers to compare mortgage rates and costs when buying or refinancing a home.

The mortgage industry probably will oppose the changes because they would require brokers to reveal how much they're paid to direct customers toward specific lenders.

Consumer advocates have criticized those fees, saying they give brokers an incentive to put borrowers into more expensive loans.

If approved, the new GFEs could be available before summer.

Here's where you can read more about changes to the good faith estimate.