Home Equity Loans (1)

We all have heard the tempting commercials for home equity loans. Most advertise no income or credit checks and loan guarantee. How can you tell if these lenders are legitimate or not? The Home Equity loans are a rich area for fraud. If considering a home equity loan ask the following questions: How long is the term of the loan? What is the interest rate? If it’s adjustable, how much can it change, how often it can change and if there is a maximum? What is the annual percentage rate (APR)? If the APR is significantly higher than the stated interest rate, something is seriously wrong. Are there any annual fees, transaction or loan origination fees? Is a complete list of all closing costs supplied? Do I need this money bad enough to risk losing my house? Be suspicious if lenders appear not to have a regular place of business or those who actively solicit you - especially if they have information about your personal financial situation or hesitate to disclose all the terms of the loan.