Federally Insured Savings and Loan Institutions 

and Federally Chartered Savings Banks

Offi ce of Thrift Supervision

Consumer Programs

1700 G Street, N.W., 6th Floor

Washington, DC 20552

(800) 842-6929

www.ots.treas.gov

Federal Credit Unions

National Credit Union Administration

Offi ce of Public and Congressional Affairs

1775 Duke Street

Alexandria, VA 22314

(703) 518-6330

www.ncua.gov

For state-chartered credit unions, contact your state’s regulatory 

agency.

Mortgage Companies and Other Lenders

Federal Trade Commission

Consumer Response Center

600 Pennsylvania Avenue, N.W.

Washington, DC 20580

(877) FTC-HELP (877-382-4357, toll free)

www.ftc.gov

Other Information Sources

U.S. Department of Justice

Civil Rights Division

950 Pennsylvania Ave., N.W.

Housing and Civil Enforcement Section, NWB

Washington, DC 20530

(202) 514-4713 

www.usdoj.gov/crt/housing/index.html

Federal Housing Finance Board

1777 F Street, N.W.

Washington, DC 20006

(202) 408-2500

www.fhfb.gov

Department of Housing and Urban Development

451 7th Street, S.W.

Washington, DC 20410

800-669-9777 (voice)800-927-9275 (TTY)

www.hud.gov

Offi ce of Federal Housing Enterprise Oversight (OFHEO) 

1700 G Street, N.W.

4th Floor

Washington, DC 20552

(202) 414-6922

www.ofheo.gov

edly pressured you to refi nance? Is your loan covered 

by insurance you don’t need or want?

If you think you’ve been taken advantage of, state 

and federal laws may protect you. Also, the following 

organizations may be able to help:

 Your local or state bar association—sometimes 

listed under “Lawyers Referral Service” in the 

Yellow Pages of your phone book. The association 

may be able to refer you to low-cost or no-cost 

lawyers who can help.

 Your local consumer protection agency, state attorney general’s offi ce, or state offi ce on aging, listed 

in the Blue Pages of your phone book.

 Your local fair housing group or affordable housing 

agency, housing counseling agency, or state housing agency.

You can learn more about credit and home equity 

loans by visiting the federal government’s web site for 

consumers, www.consumer.gov (see the Home and 

Community section). If you don’t have access to the 

Internet, ask a friend or relative to get the information for you. Or visit your local library or senior center, 

which may offer you free access to the Internet on 

their computers.

For More Information 

State Banks that Are Members of the Federal 

Reserve System

Division of Consumer and Community Affairs

Mail Stop 801

Federal Reserve Board

Washington, DC 20551

(202) 452-3693

www.federalreserve.gov

Federally Insured State Non-Member Banks and 

Savings Banks

Federal Deposit Insurance Corporation

Consumer Response Center

2345 Grand Boulevard, Suite 100

Kansas City, Missouri 64108

(877) 275-3342

www.fdic.gov

National Banks and National Bank-Owned 

Mortgage Companies

Offi ce of the Comptroller of the Currency

Customer Assistance Group

1301 McKinney Street

Suite 3450

Houston, TX 77010

(800) 613-6743

www.occ.treas.gov FRB1-1003

This information was prepared by the folDepartment of Housing and Urban DeveFederal Reserve Board, Federal Trade Cthe Comptroller of the Currency, Offi ce o
Think about Your Options 

If you’re having money problems, consider these 

options before you put your home on the loan line.

 Talk with your creditors or with representatives of 

non-profi t or other reputable credit or budget counseling organizations to work out a plan that reduces 

your bill payments to a more manageable level.

 Contact your local social service agency, community or religious groups, and local or state housing agencies. They may have programs that help 

consumers, including the elderly and those with 

disabilities, with energy bills, home repairs, or other 

emergency needs.

 Contact a local housing counseling agency to 

discuss your needs. Call the U.S. Department of 

Housing and Urban Development at toll-free 

800-569-4287 or visit www.hud.gov/offi ces/hsg/

sfh/hcc/hccprof14.cfm to fi nd a center near you.

 Talk with someone other than the lender or broker 

offering the loan who is knowledgeable and you 

trust before making any decisions. Remember, if 

you decide to get a home equity loan and can’t 

make the payments, the lender could foreclose and 

you would lose your home.

If you decide a loan is right for you, talk with several lenders, including at least one bank, savings and 

loan, or credit union in your community. Their loans 

may cost less than loans from fi nance companies. 

And don’t assume that if you’re on a fi xed income 

or have credit problems, you won’t qualify for a loan 

from a bank, savings and loan, or credit union—they 

may have the loan you want!

Do Your Homework 

Contact several lenders—and be very careful about 

dealing with a lender who just appears at your door, 

calls you, or sends you mail. Ask friends and family 

for recommendations of lenders. Talk with banks, 

savings and loans, credit unions, and other lenders. If 

you choose to use a mortgage broker, remember they 

arrange loans but most do not lend directly. Compare 

their offers with those of other direct lenders. 

Be wary of home repair contractors that offer to 

arrange fi nancing. You should still talk with other lenders to make sure you get the best deal. You may want 

to have the loan proceeds sent directly to you, not the 

contractor.

Comparison shop. Comparing loan plans can help 

you get a better deal. Whether you begin your shopping by reading ads in your local newspapers, searching on the Internet, or looking in the phone book, ask 

lenders to explain the best loan plans they have for 

you. Beware of loan terms and conditions that may 

mean higher costs for you. Get answers to these 

questions:

Interest Rate and Payments

 What are the monthly payments? Ask yourself if 

you can afford them.

 What is the annual percentage rate (APR) on the 

loan? The APR is the cost of credit, expressed as 

a yearly rate. You can use the APR to compare one 

loan with another.

 Will the interest rate change during the life of the 

loan? If so, when, how often, and by how much?

Term of Loan

 How many years will you have to repay the loan? Is this a loan or a line of credit? A loan is for a fi xed 

amount of money for a specifi c period of time; a 

line of credit is an amount of money you can draw 

as you need it.

 Is there a balloon payment —a large single payment at the end of the term after a series of low 

monthly payments? When the balloon payment is 

due, you must pay the entire amount.

Points and Fees

 What will you have to pay in points and fees? One 

point equals 1 percent of the loan amount (1 point 

on a $10,000 loan is $100). Generally, the higher 

the points, the lower the interest rate. If points and 

fees are more than 5 percent of the loan amount, 

ask why. Traditional fi nancial institutions normally 

charge between 1 and 3 percent of the loan 

amount in points and fees.

 Are any of the application fees refundable if you 

don’t get the loan?

 How and how much will the lender or broker be 

paid? Lenders and brokers may charge points or 

fees that you must pay at closing or add on to the 

cost of your loan, or both.

Penalties

 What is the penalty for late or missed payments? What is the penalty if you pay off or refi nance the 

loan early (that is, is there a prepayment penalty)?

Credit Insurance

 Does the loan package inclu

insurance, such as credit life

ployment insurance? Dependpolicy, credit insurance can c

your payments if you can’t m

that you don’t have to buy op

ance—that’s why it’s called “

insurance you don’t need.

 Credit insurance may be a ba

cially if the premiums are colclosing and fi nanced as part 

want optional credit insuranc

for it on a monthly basis afte

and closed. With monthly ins

don’t pay interest and you ca

the premiums are too high or 

longer want the insurance.

After you have answers to th

negotiating with more than one 

to make lenders and brokers co

ness by letting them know you 

best deal. Ask each lender to lo

or interest rate. And ask each to 

terms of the other lenders.

Once You’ve Selected a L

Get the Following

 A “Good Faith Estimate” of a

estimate must be sent within 

 Blank copies of the forms yo

when the loan is fi nal. Study 

understand something, ask f

 Advance copies of the forms 

ing with the terms fi lled in. A 

closing, contact the lender to 

been any changes in the Go

law, you can inspect the sett

called the HUD-1 or HUD-1A closing. Study these forms. W

tions you want to ask.

Think Twice 

before You Sign 

 Have a knowledgeable friend

housing counselor review the 

and other loan papers before 

contract. Be sure the terms a