GMAC Mortgage - A Responsible Lender
Are you a homeowner looking to refinance your first mortgage or take out a second mortgage or a home equity line of credit? Are you a renter, wondering if you can afford to take the plunge into home ownership?
Either way, with home mortgages and foreclosures being featured in the news these days, consumers are wise to stick with reputable, established lenders, like GMAC Mortgage, to avoid predatory lending practices.
What Are Predatory Lending Practices?
One example of a predatory lending practice is to build excessive or hidden fees into a loan. The home buyer goes to a closing and suddenly finds out they are paying more than they expected to for interest, points, closing costs, or some other expense associated with the closing.
By the time the buyer finds out about these hidden costs or excessive fees, they have often already moved out of their rental home, and now they are stuck. It's either sign the papers and accept the excessive or hidden fees, or be homeless. Faced with this dilemma, many buyers sign the papers, thinking they can refinance the loan later.
One way to avoid excessive or hidden fees is to deal with an established lender, like GMAC Mortgage. GMAC Mortgage has been in business since 1985, and GMAC is one of the largest financial services companies in the world. With such a great reputation to uphold, GMAC Mortgage is not about to risk its reputation by hiding fees or charging excessive closing costs to borrowers.
Encouraging Buyers To Get In Over Their Heads
Another predatory lending practice is to encourage home buyers to sign up for a loan even though the lender knows the borrower cannot afford to repay the loan. Substandard lenders prey on the emotional connection people have to home ownership. They encourage renters to do whatever it takes to own a home - including making a commitment to pay mortgage payments that are beyond the borrower's means.
When the borrower moves into their new house and starts making the high mortgage payments, they discover that they have absolutely no discretionary income left after making their mortgage payment.
Some borrowers are willing to sacrifice restaurant meals, vacations, and entertainment expenses so they can achieve the dream of home ownership. Even those buyers, however, run into financial trouble when something goes wrong with the home and they have to find the money to make repairs.
Home loan counselors at GMAC Mortgage educate buyers and homeowners about these predatory lending practices, leading to successful home loans, and homeowners who can afford to make their mortgage payments.
