Mortgage Financing: Signs Of Predatory Lending

If you're shopping for a home loan, you can save thousands of dollars by being aware of predatory lending practices, in which you're charged too much for your loan or are forced to buy services you don't really need. You can protect yourself by learning to recognize the signs of predatory lending. The Center for Responsible Lending lists seven specific warning signs that consumers should be aware of when applying for a mortgage.
The first warning sign is excessive points and loan origination fees. Since these fees are often financed as part of the loan, it's easy to hide them. Competitive lenders typically charge 1% or less of the loan amount, but predatory lenders often charge 5% or more, which can add up to thousands of dollars over the course of a home mortgag View the rest of this article