Caller Times – Home loans confuse, distress buyers

When Corina Lopez bought her house in 2001, she financed through the previous owner.

The terms were relatively simple: Lopez put down $3,300 and would pay $496.47 a month for the next 15 years for the $49,500 house.

Five years later, she got a mortgage through a traditional broker.

She thought refinancing was a good idea, and she had plenty of reasons. The new mortgage would help her repair her credit and dislodge some extra cash, about $3,900, that her husband used to paint and install new carpet.

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