The mortgage business is so confusing these days that people wind up in risky or inappropriate mortgages just because someone told them to. Freddie Mac learned that roughly one in five people who ended up in high-cost loans had no business being there. They would have been perfectly suitable for prime mortgages, meaning mortgages that are at market rate. They either didn’t comparison shop at all or they were swindled by someone telling them they didn’t qualify for one. Don’t take one person’s quote on a loan. Get at least three. Another problem is that people sign up for mortgages with pre-payment penalties. Lenders slip these in at the last minute when you’re at the closing table. But you have the right to see your closing documents – also known as the HUD1 statement - the day before closing. So, be sure to ask for it 24 hours in advance so you know what’s going on. If everything doesn’t look right to you, walk away.