All financial institutions conducting business in Illinois are prohibited from discriminating against mortgages, business or personal loans, and credit cards. The Illinois Department of Human Rights may investigate charges of financial credit discrimination brought against a bank, credit union, insurance company, mortgage banking company, or savings and loan associations.

PROHIBITED FINANCIAL ACTIVITIES

Financial institutions break the law by discriminating by:

1 Reject or modify the services normally offered.

2 Reject or vary the terms of a loan, including the variation of terms based on the:

• A parcel of a property offered as collateral is located in a specific geographical area, or
• The institution does not consider the entire regular and secure income of each of the people who would be responsible for the loan installments.

3 Use the rules of loans that do not have economic support.

4 Refuse to issue a credit card despite submitting a proper application.

TYPES OF DECRIMINATION CONTEMPLATED

• Race • Color • Religion • Nationality • Ancestry
• Age (40 years and over) • Gender • Marital Status
• State Protection Order • Mental and Physical Disability
• Military status • Sexual orientation (including gender identity)
• Dishonorable discharge from the military • Family status: Financial institutions are prohibited from exercising discrimination on the basis of family status only for loans related to real estate transactions.

Mortgages

Getting a mortgage is probably one of the most significant financial decisions you will make in your life. Asking the right questions before choosing a loan can be the difference between getting a loan you can afford and potentially losing your home in foreclosure.

With the growth of the mortgage market during these years, and with the creation of new products and programs, it is important to understand the terms of the loans offered to you so that you can make a decision with all the information.

If you’re thinking about getting a mortgage loan, I suggest you take the time to learn the various options. If you need help, you should contact a local HUD-approved housing council agency. Counselors offer a variety of free services for eligible debtors who are looking for their first loan mortgage or home improvement loan, as well as those who are behind on their monthly payment or who want to refinance an overcharged loan.

Tips to avoid an excessive mortgage loan

1. What is an over-loan mortgage?

An over-loan mortgage is an unnecessarily expensive loan that provides no financial benefit to the debtor for the additional costs. In many cases, homeowners are misled about the true costs of the loan and the terms or are pressured to sign loans that they cannot afford. Many of these homeowners lose their homes in foreclosure.

2. What is the amount of the mortgage loan?

The mortgage loan amount is the amount of money you borrow. When buying a home, this amount is usually the price of the property plus any fees minus your initial outlay. If you refinance, the amount of your refinanced loan will be the full payment on your current mortgage, plus any fees.

3. What is the full term of the mortgage loan?

Loan terms are usually 15, 20, 30, or 40 years. The longer the term, the more you will pay interest on the full term of the loan. Some loans are structured so that you don’t finish paying off the entire property. You are obligated to pay the remaining amount, or lump-time payment, at the end of the loan. In many cases, the lump-headed payment is a considerable amount. Beware of mortgages that contain global payments! If you can’t make the lump-off payment or if you don’t have the ability to refinance the lump-off payment, you could lose your home in foreclosure.

4. How much will my monthly mortgage payment total be? How is this payment divided between interest and principal for the term of the loan?

You should know what the total amount of the monthly payment is to decide if you can repay the loan. Just because a lender says you qualify for a certain amount of loan doesn’t mean you got a financial loan.

5. Do monthly payments include tax and property insurance expenses?

If the lender informs you that your payment is “monthly principal and interest,” this does not include the amount you need to pay all months of taxes and property insurance. Every mortgage loan requires the homeowner to pay taxes and property insurance.

6. Is the interest income on the loan “fixed” or “adjustable”?

The interest yield can be “fixed,” meaning that it does not change through the entire term of the loan. There are also variable or adjustable income (ARM) loans where the interest income can change during the term of the loan.