Along with the exceptionally low interest rates of recent years has come an unfortunate companion: predatory lenders. The commercial noise of all the competing lenders in the home mortgage loan market often obscures the very real problem of predatory lending. If you've recently taken on a mortgage or are thinking of refinancing your home, it's critical that you be aware of the inherent dangers of borrowing money.

Though predatory lending practices are most prevalent among those with lower incomes, the tactics extend to all consumers. It's important to educate yourself in order to avoid being taken in inadvertently. Anyone using the right terminology and offering great rates can appear to be a legitimate banking-related business, but beware of the many signs of those who are simply looking to defraud you and your family.

Among some of the most common warning signs of bank fraud are the following:

Excessive fees, severe prepayment penalties, so-called "Yield Spread Premiums," which are kickbacks to brokers, and loan flipping. This is the common practice of repeated refinancings on one home. These transactions garner the lender repeated profits from closing fees and more, but are of no benefit whatsoever to the borrower.

Each year, an astounding $25 billion of American savings is taken in the form of predatory mortgages, payday loans, overdraft loans, tax refund loans, and excessive credit card debt. Predatory mortgages alone make up nearly $10 billion in fraudulent fees, charges, and kickbacks. Bad lenders count on consumers being unaware of their rights when it comes to the complicated process of obtaining a home loan.

If you suspect any questionable fees or terms within your mortgage agreement, you may want to consider performing your own Do-It-Yourself Kitchen Table Audit or having a mortgage audit conducted. The complex mortgage landscape in recent years has unfortunately invited increased abuses among shady lending organizations. Even if you think your mortgage fees were legitimate, it doesn't hurt to get your closing documents out and perform your own Kitchen Table Audit.

Do-It-Yourself Kitchen Table Audit

In order to perform the Do-It-Yourself Kitchen Table Audit to find out if you are a victim of predatory lending and bank fraud you will need to get your mortgage documents out on the Kitchen Table.

What you need to do is to get your Settlement Statement out of the pile and take a look at line number 800. Items Payable In Connection With the Loan.

The Settlement Statement, usually called the