Solution: Ask up-front if there is a prepayment penalty on the loan, and if so, how long it lasts (anywhere from 1-5 years). Then when signing, ask, “Show me where it says there is no prepayment penalty,” or “Show me the terms of the prepayment penalty.”
Conforming, low interest rate loans do not have prepayment penalties. Creative, non-conforming loans do have prepayment penalties most of the time. As long as the duration of the penalty matches with the time you plan to keep the loan, then there is no problem. Seeing it in print before you sign will prevent an unwanted surprise.

RIP-OFF: The overpriced biweekly mortgage payment plans that are now being advertised. The plan is sound, the rip-off is the cost – typically $400 for a program you can do yourself for free.

SOLUTION: We wrote this one up separately. Look here.

RIP-OFF: Paying too much in fees is a rip-off. This could be in paying too much for loan origination, loan discount, broker fee, or various “junk fees.” Comparing the APR (annual percentage rate) is supposed to give consumers a fair comparison, but it does not. Why? Because some companies and banks have tricks to skew the APR. How then can you truly know if you’re getting a good deal?

SOLUTION: I am exposing all the tricks, lies, and hidden secrets that cheat home buyers and home owners refinancing out of their hard-earned money. When one mortgage broker heard about this, he said, “Oh-oh, we’re dead!”

Clayton Makepeace, founder and president of The Profit Center said, “Carolyn Warren better get a body guard. Her new tell-all on the mortgage industry exposes so many of the lending industry’s favorite frauds, every loan officer from Seattle to Miami is going to be gunning for her! Mortgage Ripoffs and Money Savers is like a map that faultlessly guides you around the carefully camouflaged land mines laid by lenders. And it gives you simple, step-by-step directions for saving tens of thousands of dollars.

“If you’re looking for ways to save a king’s ransom on your mortgage and monthly payments, you simply must read this book. It could easily put an extra $10,000… $50,000… $100,000 or even more into your bank account!”

RIP-OFF: Taking away your right to shop around is a consumer rip-off. Sometimes loan officers will tell people not to talk to other mortgage companies, because too many inquiries on their credit report will lower their score and prevent them from getting a good loan. This is not true! The credit bureau risk model allows multiple mortgage-related inquiries within a 14-day period without affecting your score.

SOLUTION: Inform the person telling you this that multiple inquiries lowering a credit score applies only to multiple credit card inquiries. Advise them to order the special report “Unlock the Credit Score Secret! Get Your Highest Score Ever and Save Thousands of Dollars!” There they (and you) will discover extremely valuable, little-known, and never-told inside information.

Sandy Hutchens posts this article for everyone to see, hoping that they wont fall victim to these scams