Calls for US home loan contracts to be shorter
Monday February 25, 2008
A survey by the US Federal Trade Commission has found that one-third of borrowers surveyed could not quote their interest rate, with two-thirds unaware of whether their home loan included pre-payment penalties designed to avoid refinancing.
This has sparked calls to reduce the length of home loan contracts to far shorter documents, with experiments in doing this greatly increasing the average knowledge of terms.
Source: Reuters
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