highest rate you will see on a residential loan is 12-13%. And that's hard equity..meaning they probably have no job, or are about to go into foreclosure or something similar.
give me a break that these lenders are predatory and the people are victims. granted, there have been so many shady brokers and salespeople in the last few years (especially during the boom, where any joe schmoe could come in and make money..and do terrible things to their clients) but at the end of the day the paperwork explains everything. fact is, a large part of america lives above their means and is completely irresponsible wtih their finances. there is a price to pay
interest rates are calculated on the risk of the borrower....and margins. I.e. what it can yield on the secondary market, and what offsets <x> amount of defaulted/foreclosure loan.