From Yahoo Finance: 2025-05-10 09:00:00

A report from Tomo Mortgage reveals that predatory lending practices could cost U.S. homebuyers $11 billion in 2025 due to inflated rates, hidden fees, and misleading pricing. Keep an eye out for signs that your mortgage lender may be ripping you off to avoid falling victim to point traps and sleight-of-estimates.

Some lenders use deceptive tactics like “point traps” to advertise low interest rates but require borrowers to pay exorbitant upfront fees to obtain that rate. This can lead to significant added costs that borrowers may not fully understand, especially if they focus solely on the attractive interest rate without considering the additional points.

To avoid being misled by lenders, it’s crucial to be an educated consumer and look out for warning signs that indicate you may be paying more than necessary for your home loan. By understanding the tactics used by some lenders, borrowers can make informed decisions and avoid being taken advantage of in the mortgage process.



Read more at Yahoo Finance: 7 Key Signs Your Mortgage Lender Is Ripping You Off