Am I a victim of predatory lending?

About 5 months ago my husband and I were approached (via phone) by a loan broker. He offered us a great refinancing deal. He said that our credit had improved since we had taken out out original home loan and we qualified for a lower interst rate. He told us that we could take out cash and still have a lower... show more About 5 months ago my husband and I were approached (via phone) by a loan broker. He offered us a great refinancing deal. He said that our credit had improved since we had taken out out original home loan and we qualified for a lower interst rate. He told us that we could take out cash and still have a lower payment. My husband asked him to go over the terms over and over and it all sounded great. However, when we got our payment slip from Countrywide it showed that we had 4 payment options: 1:min. payment (which was less than interst only) this was lower than our original payment 2.Intrest only (which was $200 more that our original payment) 3.intrest plus principal (this was $600 higher than the original payment) 4. a 15 year payoff for over $1000 more than our original payment.
We had never heard of this and would obviously have not signed on for this if we understood. Countrywide they said they had similar complaints. We had to refinance this loan as well & lost $36K in equity.
Update: I don' know how we lost so much equity. We only took out $20K. At the start of the process we owed $332 on our home and now we owe $385 (fees I suspect.) Only the broker sugar coated the entire thing.
12 answers 12