Mortgage Calculator

Sub-prime lendors sometimes target financially strapped home owners for predatory mortgage refinancing, a practice in which homeowners are pressured to refinance their mortgage with a loan that has excessive points, fees, penalties of interest rates. Most mortgage brokers do not use these tactics. You can use a mortgage calculator to compare loans and determine whether a high pressure broker is selling a bad mortgage product. For those brokers who do sell bad products, certain states have begun to take action.

Joining a growing number of states in the battle against predatory mortgage lending, Massachusetts enacted a strong anti-predatory lending law earlier this week. The new law passed with overwhelming bipartisan support and with the endorsement of both mortgage industry trade groups and consumer and civil rights advocates.

Among the law’s significant provisions:

Triggers strong consumer protections for loans with fees greater than 5%. The law establishes a comprehensive definition of points and fees to remove the incentive to structure loans in a manner to evade the law’s coverage.

Prohibits “flipping” on all home loans, the practice of knowingly refinancing an existing home loan unless the refinancing is in the borrower’s interest.