RIP-OFF #1: One of the biggest rip-offs mortgage companies don't want you to know about is the "Glossing over of the prepayment penalty". Many Mortgage Companies "Gloss over" the prepayment penalty during the loan application and closing, hoping borrowers don't discover its existence

SOLUTION: Ask up-front if there is a prepayment penalty on the loan, and if so, how long it lasts (anywhere from 1-5 years). Then when signing, ask, "Show me where it says there is no prepayment penalty," or "Show me the terms of the prepayment penalty."

Conforming, low interest rate loans do not have prepayment penalties. Creative, non-conforming loans do have prepayment penalties most of the time. As long as the duration of the penalty matches with the time you plan to keep the loan, then there is no problem. Seeing it in print before you sign will prevent an unwanted surprise.

RIP-OFF #2: Some Companies try and sell the overpriced biweekly mortgage payment plans. The plan is sound, the rip-off is the cost - typically $400 for a program you can do yourself for free.
SOLUTION: Pay an extra payment during the year on your own. It accomplishes the same thing!

RIP-OFF #3: We talked about this earlier, but we must say it again