The practice involves talking the consumer into refinancing over and over so a lender can charge fees is called 'Loan flipping'
When a lender convinces a borrower to refinance his or her mortgage by taking out a new, long-term, high-cost loan, even when doing so has no advantage to the homeowner whatsoever, this is known as loan flipping and is one of the most prevalent forms of predatory lending practices.
When balloon payments are included in the tiny text of a contract, loan flipping can have particularly negative financial effects for borrowers. This is charging low-interest rates upfront for a loan but adding a sizable lump sum payment two, three, or five years afterward. The borrower could be compelled to refinance the property once more at that point or risk losing it entirely.
To learn more about lenders and Refinancing
https://brainly.com/question/26813688
#SPJ4
