Rising Mortgage Rates and Creative Lending May Help Borrowers, says LoanPage.com

(PRWEB) June 19, 2007 -- LoanPage.com urges borrowers to consult a mortgage professional before signing up for new creative lending options. With mortgage rates rising and home loans down, lending institutions are getting creative to attract borrowers. Though many of these options are competitive and offer the borrower some advantages, LoanPage.com reminds borrowers that smart loan shopping should include loan comparison and a complete understanding of the loan's terms. LoanPage.com, a complete source of mortgage loan tools and lenders, links visitors to competitive quotes for all types of mortgages and refinancing (http://www.loanpage.com/).

To appeal to the shrinking pool of borrowers, lenders have become creative. This is good news for borrowers, but the options can be confusing. LoanPage.com can help by explaining lending terms and linking borrowers to lenders who offer competing loan quotes. CNN Money cites several recent inventive loan packages:

•    Retail banker Washington Mutual has a flexible mortgage that lets borrowers jump back and forth between a fixed rate and an adjustable rate mortgage (ARM) at little or no charge.
•    Bank of America has a mortgage with absolutely no percentage points or other fees (a percentage point is typically one percent of the mortgage amount, and many traditional loans carry several percentage points).
•    Credit unions are offering a hybrid ARM in which the highest rate will not exceed the national rate at the time of the initial loan.
•    Ditech, an online lending arm of GMAC, has a version of the 30-year fixed loan that combines the mortgage with a home equity line of credit and a credit card rewards program.

The LoanPage.com article "Predatory Lending: Buyers Beware" is one of several resources that offers borrowers information on common lending pitfalls (http://www.loanpage.com/articles-and-advice/new-home-loan/predatory-lending-buyer-beware.aspx). In a market where new mortgage options and packages are being created, borrowers need to be aware of unscrupulous practices such as bait-and-switch, loan flipping, equity stripping and more.

LoanPage.com is a complete source of mortgage loan tools and resources, including calculators and a mortgage glossary. Visitors can find answers to the most common loan questions, download a loan application or find lenders in their area.

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