To many people, owning a home is a dream. However, if purchasing a home involves borrowing from a predatory lender, that dream can quickly become a nightmare. This article offers tips on spotting and avoiding predatory mortgage lenders.

Lender Charges Excessive Prepayment Penalties

Reputable lenders will rarely charge prepayment penalties, and, if they do, the charges are reasonable. Predatory mortgage lenders charge excessive prepayment penalties in order to discourage your from refinancing.

Mortgage Contract Contains a Mandatory Arbitration Clause

If you sign a mandatory arbitration clause, you forfeit all of you rights to take legal action of your lender. This means, if you later discover that you