You have a passion for mortgage loans
Refuse any loan that has a prepayment penalty that covers more than three years, and look closely at the terms for any loan that has even a short prepayment penalty. Because good lenders rarely append prepayment penalties, the existence of this penalty suggests that the mortgage loan is predatory. • Yield spread premiums. When a mortgage broker charms a borrower into signing for a mortgage with an interest rate that is much higher than the borrower would be able to get from an honest broker, the broker's reward is a sum called the yield spread premium. This kickback is a strong incentive for the broker to talk you into a high interest rate.