Us areas tend to be more likely than many other borrowers to get loans that have a prepayment penalty

Now, the middle for Responsible Lending unearthed that borrowers staying in predominately African US communities tend to be more most most most likely than many other borrowers to get loans which contain a prepayment penalty, a costly fee charged for paying down the loan before its deadline. This research managed for other key factors, such as for instance creditworthiness, that may impact whether a loan provider imposes a penalty. It results in one unmistakable summary: borrowers from white communities have the chance that is best of having a home loan without having a prepayment penalty.

Auto lending and payday lending

Car loan markups are loan provider kickbacks to dealers for quoting customers greater finance rates once they could be eligible for a less price.