Home equity loans What the media say
If they are under 1% of the loan amount, they are normal. Predatory loans have fees of above 1%, and frequently charge fees above 5%. Because of the credit crunch, it is easier than before to avoid dishonest mortgage loans. Even predatory lenders no longer have so much available credit that they can afford to make offers to borrowers who might not be able to cover their payments. However, scarce credit has also put the pinch on borrowers, making them less finicky than they would otherwise be.