A place where I write on home loans
What are the initial signs of a predatory loan? The interest rates for predatory loans are generally high compared to the rest of the market. When you ask about the high interest rate, the lender may recommend managing the interest rate by repeatedly refinancing ("flipping") the loan, another sign that the loan is predatory. High pressure tactics are a third bad sign; predatory loans are what one expert calls "loans seeking consumers," and lenders are aggressive in seeking out new customers. Unlike legitimate lenders, they solicit door to door or by telemarketing as well as by mail. What do the terms of predatory loans look like? Mortgage loans offered by predatory lenders have a wide range of unethical fees attached, as well as having high interest rates.