Predatory mortgage lending describes any lending practice that takes advantage of the homeowner. These practices can cause you to overpay for finance charges or even result in losing your home. Here are tips to help you avoid predatory mortgage lenders.
Predatory mortgage lenders use loopholes in the law to profit by taking advantage. If your mortgage lender or broker exhibits any of the following behaviors you should seek your mortgage elsewhere.
Avoid Mortgage Lenders and Brokers That:
Ask you to falsify information on your application.
Ask you to leave documents unsigned or ask for your signature on incomplete or blank documents.
Fail to provide Truth-in-Lending statements, Good Faith Estimates, or HUD Settlement Statements as required by law.
Ask you to refinance the mortgage at regular intervals as a condition of loan approval.
Tries to get you to borrow more than the amount needed to refinance or purchase your home.
Fails to disclose all closing costs or requires a balloon payment as part of the contract.
Unethical mortgage brokers require payment for finding the mortgage or referring business as a condition of working with you; while this is not illegal you should not do business with individuals engaging in this practice. You can learn more about avoiding predatory mortgage lenders and common mortgage mistakes by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing: What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
Baltimore Mortgage Refinance
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Before applying for a personal loan to pay for home repairs, wedding
expenses, or college tuition, carefully weigh the advantages and
disadvantages of a home
equity loan. Home equity loans provide a lump sum of
quick cash for large purchases. Moreover, because your property secures
the loan, most second mortgage applications are approved.
Advantages of a Fixed Rate Home Equity Loan
Home equity loans are beneficial because they generally have a lower
interest rate. Using a credit card for home repairs, emergencies, etc is
very costly. Because of high finance charges, paying the balance on
credit cards is almost impossible. On the other hand, a home equity loan
has a low fixed rate, which allows you to pay off the balance within a
few years.
Furthermore, home equity loans are available for individuals with poor
credit. Most bank loans and credit card companies will not loan money
or grant credit to individuals with a low credit score. In some cases,
it is possible to obtain a loan with adequate collateral or a co-signer.
If a bad credit applicant does not secure the loan with a piece of
property or have a co-debtor, lenders will not approve the application.
Home Equity Loan Dangers
While low rate home equity loans have several advantages, there is one
major pitfall of getting a second mortgage. The loan approval is based
on your home’s equity. Hence, you take out a second loan against your
home. If you are unable to repay the home equity loan, the lender will
foreclose on your house. This is true even if you continue to pay your
first mortgage. Because the home has two liens, either lender has the
right to foreclose.
Finding Low Rate Home Equity Loans
Getting the best deal on a home equity loan requires work. To begin,
shop around for quotes from a mixture of lenders. These may include
banks, mortgage companies, brokers, credit unions, etc. Mortgage brokers
are extremely helpful. Moreover, contact your present mortgage lender for
a quote. Before applying for a second mortgage, review your credit.
Resolve credit errors, and improve credit blemishes. This will help you
get the best rate.
Here are our
href="http://www.abcloanguide.com/homeequityloan.shtml">
Recommended Home Equity Loan Companies Online.
Carrie Reeder is the owner of
href="http://www.abcloanguide.com/">ABC Loan
Guide, an informational website about various types of loans.
Tags: 2nd mortgage, equity loan, home equity, interest rate, mortgage lenders2nd mortgage, equity loan, home equity, interest rate, mortgage lendersShare This