Predatory Mortgage

Expert, localized Los Angeles answers provided by Heather Roy

Predatory Mortgage
	We currently have a predatory mortgage loan 10.75% (interest only) on a $625,000 house. We are currently working with a Non-profit org to have this loan restructured into something more affordable. The NP org pointed out that we paid way too much on points - 4% - $25,000.00. Was it legal for the broker to charge us that many points without any benefits towards our mortgage? Can we get some of our money back? This loan is outrageous and we were trapped due to the circumstances.

	The points were no more outrageous than the interest rate -- in fact points are simply an extra up-front interest charge. You agreed to them and as far as I know it was legal. But if the points were really 4%, on a loan of less than $625,000 they should have amounted to a lot less than $25,000. Perhaps you're talking about not only points but other closing costs. No way I can judge from here.
	Edith Originally published on July 16, 2007

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