Seattle.gov Home Page
Seattle.gov This Department
Link to Predatory Lending Home Page Link to Predatory Lending Home Page Link to Predatory Lending About Us Page Link to Predatory Lending Contact Us Page
Seattle/King County Coalition for Responsible Lending


Homeowners - If You Think Your Loan is Unfair
Avoid Being a Victim
Housing Professionals and Advocates
News and Legislation

Questions to Ask Your Lender

When shopping around for a loan:

  • What is your best interest rate today? What are the total loan fees?
  • Is this rate fixed or adjustable? (A fixed interest rate stays the same for the life of the loan, while an adjustable rate changes.)
  • What is the total monthly payment, including taxes and insurance?
  • What is the term (length) of the loan?
  • Is there an application deposit? What is it, and how much is refundable?

When you apply for your loan:

  • Do you charge overages? (An overage is a fee hike designed to give more profit to the lender.)
  • If I lock in my interest rate today, what is the best rate available? What are the fees?
  • What is the annual percentage rate (APR)?
  • Is there a balloon payment due on the loan?
  • Are there any pre-payment penalties? What are they and for how many years are they in effect?
  • Does the interest rate increase if my payments are late?
  • What is the total monthly payment, including taxes and insurance?

If the loan is an Adjustable Rate Mortgage (ARM), be sure to ask:

  • What is the initial rate? How long will that rate stay in effect?
  • How often can the rate change?
  • What are the rate and payment caps (limits) each year, as well as over the life of the loan?
  • Can I convert (change) my adjustable rate loan to a fixed rate without doing a new loan?
  • Is there a prepayment penalty? If so, how long does it apply?
  • Did your lender give you your Good Faith Estimate?
  • Insist that you get a copy of this document within 3 days of your loan application!




What is a Predatory Loan?

How to Avoid a Predatory Loan

Questions to Ask Your Lender

Loan Closing Checklist

Help is Available

There are resources available to assist victims of predatory lenders.

If you think you might be a victim, please call Community Home-Ownership Center (CHOC) (206) 587-5641 or (800) 317-2918 for information and referrals.


Predatory Lending Home | About Us | Contact Us | Homeowners - If You Think Your Loan is Unfair | Avoid Being a Victim | Housing Professionals and Advocates | News and Legislation | Links and Publications