If you own your home, it is most likely your greatest single asset. That is why it is important to be careful when agreeing to a home equity loan. Homeowners--particularly elderly, minority, and those with low incomes or poor credit--should be careful when borrowing money based on their home equity. Why? Certain abusive or exploitative lenders target these borrowers, who unwittingly may be putting their home on the line.
You can protect yourself from being a victim of loan crooks by following these tips:
- Ask specifically if credit insurance is required as a condition of the loan, and shop around for the best rates.
- Keep careful records of what you’ve paid, including billing statements and canceled checks.
- Read all items carefully.
- Consider all costs of financing before you agree to a loan.
Resource: Facts for Consumers "Home Equity Loans: Borrowers Beware!" The Federal Trade Commission, April 1998
[ Home | Your Money | Get Organized | Tightwad Tidbits | Living Better | Safety & Privacy | Buyer Beware | Kids & Money | About CEU | Search ]
|
|
| Web site coordinators: Jamie Thompson Sandra McKinnon Site evaluation: Cynthia Crawford Last updated: March 09, 2005 |
Web site established
by: Kate Akers Mark Belwood Cynthia Crawford Sandra McKinnon Diana Hammond |
University of Missouri Extension does not
discriminate on the basis of race, color, national
origin, sex, religion, age, disability or status as a Vietnam-era veteran in employment or
programs.