3 Things To Watch Out For When Getting A Home Equity Loan Online
The internet can be a valuable resource for researching the ins and outs of getting a home equity loan. It can also be a great place to find a reputable mortgage broker, as long as you are careful not to get caught in an online home equity loan scam.
Watch out for subprime lending.
Subprime lending is when a lender offers to give you a lone for an extremely high interest rate and tacks on excessive fees. Usually these loans are given to high risk individuals who are so desperate for a loan that they dont take the time to shop around for a company that will work with them despite a bad credit rating.
Watch out for equity stripping.
Equity stripping is when a loan is based solely on the value of your home, and doesnt take into consideration your ability to repay the loan. The usual result of these loans, is the borrower cant repay it and the lender ends up acquiring the home and all the equity in it.
Watch out for predatory lenders.
Predatory lenders thrive on setting up loan situations in which the borrower is destined to default, consequently losing his home. Some...