The American Enterprise Institute's loan cheat sheet - Know the basic facts about your mortgage
The American Enterprise Institute's definition of terms - Familiarize yourself with mortgage terms
AnnualCreditReport.com - Request your free annual credit report
SmartUSA.com - See pictures of the Smart Car

Did you know that about two-thirds of all loans are not done by the lenders themselves? They're done instead by mortgage brokers. Mortgage brokers don't have the cash, but they're like the retailer who sells you a loan. Meanwhile, there's a new report out that says about half of all sub-prime mortgage holders could have qualified for good loans at good rates. So what happened? Some mortgage broker conned them into it a sub-prime loan. Washington Mutual has issued a new policy that requires brokers to tell people the truth about whether their interest rates will change, if they'll face a prepayment penalty and if the broker will receive kickbacks (aka bribes) from the deal. Whenever Clark talks to people who are in weirdo exotic mortgages, he always asks them if they knew beforehand that they'd have a prepayment penalty. You have to be sure that this is disclosed to you before the closing. WaMu is also going to call each borrower before the closing and verify that they aren't being ripped off by the broker.

The best way to protect yourself is to shop around for a mortgage. This is a huge field where many people are ethical, but there are some who engage in criminal behavior. Clark thinks two steps should be taken to help out: First, prepayment penalties should be banned. If you find out before closing that you'll be subjected to one, walk away from the negotiating table. That's what Clark did once when he was almost about to be hit with such a penalty. Second, the Department of Housing and Urban Development needs to develop a clear disclosure form to explain in plain English the details of a mortgage. Until they do it, there's a disclosure form that Clark really likes developed by The American Enterprise Institute.

Do you want to legally get a new music release for free online? British alternative rock band Radiohead will be making its new album available digitally with no suggested price. That means that you can pay whatever you think In Rainbows is worth -- from zero or a penny on up. Radiohead spent many years on a major label, but when their contract ended they decided to take this groundbreaking new step on their own. Giving away free music online is a tactic usually employed by independent bands who want to generate a buzz. But Radiohead is the first mainstream act to try it out. With the average price of CDs from mainstream artists hovering around $13, the record industry is watching with bated breath to see what happens to Radiohead. Will people pay a reasonable amount when they're in control of pricing? Two of Clark's staffers think folks will cough up anywhere from four to 10 bucks (or roughly a dollar/song) for the album. But they also acknowledge that many people may pay zero because the Internet is so anonymous and there's no one there to police them. A few restaurants across the country have been trying out this pay-what-you-want business model with varying results. We'll report back later to let you know how this whole thing plays out for Radiohead.

A few days ago Clark told you that TransUnion and Equifax will begin allowing people who don't live in states with credit freeze laws greater access to freezes for a price. Experian has now announced that they too will modify their credit freeze rules in the same way. Credit freeze laws started in California and are now in 39 states on the way to being in all 50. But surprisingly only about 50,000 people across the country have taken credit freeze action. Experian's offer begins Nov. 1 and will cost $10 just like TransUnion and Equifax. So if you want to freeze (or unfreeze) your credit with all three bureaus it will cost $30. Keep in mind that this service is completely free those who are already victims of ID theft and have a police report or FTC affidavit to prove it.

What is a credit freeze and why is it so important? Criminals have access to your ID so many ways. Freezes allow you to lock up your records and select a secret code that only you know and can use to temporarily thaw your credit. So criminals won't be able to get credit in your name because they don't have your code. This is the most effective tool against economic ID theft and it's a shame that so few people have used it so far. Even Clark plans to do a credit freeze now that it's available to him in Georgia. After all, ID theft happens to 10 million people each year.

For years Mercedes Benz vowed that it would never bring its Smart Car to the United States. The luxury carmaker claimed there would be no market for it. But now that people wants smaller and more efficient rides, the Smart Car is set to hit our shores in 2008. The Smart Car is a two-person vehicle that Clark has been obsessed with since he first saw one in Europe. In fact, Clark and his wife have toured the factory in eastern France where these cars are made. Smart Cars were originally designed as a joint venture between Mercedes and the Swatch watch people before the latter company pulled out. A basic Smart Car has a list price of $12,000, but that can rise to $20,000 if you fancy it up. Clark recently had a chance to test drive a Smart Car for a TV story. He's not completely sold on the car yet -- even though he previously put a refundable $99 dollar deposit down. The fuel economy is great (between 40-60 miles around town), but it may be too small for his five-person family. Safety is another concern. The Insurance Institute for Highway Safety doesn't have a crash rating for the Smart Car yet. They think it may be too light to hold up well in a crash. While filming the Smart Car TV story at a Mercedes dealership, Clark couldn't help but notice some of the huge and fancy other vehicles on the floor. There was one Mercedes that cost $202,000. You could sure buy a lot of Smart Cars for that price!