Check with your local Better Business Bureau or state attorney general and ask if there have been complaints against any company you are considering. Ask how to find local housing counseling agencies. One way that lenders make loans sound very attractive is to make the monthly payment small but require a big balloon payment at the end of the loan period. Some loans have you wait to repay the entire loan amount until end of the loan term. This promise may be just a way for the lender to charge you higher fees and closing costs.
Predatory lenders make money by charging excessive fees every time they refinance the loan.
Before borrowing money, know exactly what the lender is offering. You have a legal right to know the total cost of the loan, the annual percentage rate, the monthly payments, and how long you have to pay back the loan. Always ask questions until you understand everything. Have all fees and points explained. It is important to know more than the monthly payment.