Have you been recently looking into home equity loans, or has someone you love been considering it, perhaps to finance a new boat, remodeling costs, or even college bills?

If so, you may want to read this – it could make all the difference in the world. Scammers target the elderly, minorities, and people with low income or bad credit, so if you fall into one or more of those categories, be especially careful. Getting scammed by a professional can happen to anyone, though, so tread carefully when considering home equity loans, or any types of a loan.

Extra ‘Insurance’ Charges This is fairly common, and it’s sad that it is so.

Picture this, You’ve found a great loan that you can afford, after shopping for home equity loans for quite some time. You now need the money soon, and you’re at closing – and quite excited that the loan is actually happening.

Your lender gives you papers to sign for credit insurance, or other benefits that you didn’t ask for, and probably don’t need. Your lender really, truly hopes you don’t notice, and if you do indeed notice, you might be afraid to ask about them, or complain, in fear that they might reconsider your loan, making you search for home equity loans all over again.

If you do actually ask about them, you’re lender might tell you something along the lines of ‘this insurance comes with all of our home equity loans, don’t worry’, making you think that there isn’t any charge.

Or the lender will go with a scare tactic – he might say that if you want the loan without the insurance, the paper will have to be rewritten, taking extra time, or he may say that the manager will reconsider the loan altogether.

If you agree to the insurance, however, you’re paying for something that you may not need, or even want. Don’t agree to these charges on any home equity loans, not if you don’t want them there.