Mortgage Advisors

mortgage advice

Patrick, 30 & Rachel, 28

Avon Lake, Ohio
30 year Fixed Rate Mortgage
6.75% Interest Rate

Why did you choose this type of mortgage?

We had a few bad experiences with mortgage loans and wanted to lock in a fixed rate before the interest rates rose any higher. When we first purchased our home we had a 6.25% fixed rate for 30-years. Unfortunately, our original mortgage broker then convinced us to refinance with an interest-only loan to take advantage of the very low interest rates at the time. He suggested to pay an additional amount towards the principal each month, which worked well for the first 7-months until the interest rates skyrocketed and our payment increased by 50 percent.

How did you find and select your broker/lender?

Our latest broker is a friend in the business. She searched many lenders to obtain the lowest interest rate for us. Our original broker was recommended by a friend of a friend.

Were you happy with your mortgage lender?

We were very happy with our most recent mortgage broker. She was very helpful in finding us a good deal and explaining all of the details involved. When we first bought our home we used a different broker that in hindsight, wasn't working for us as much as for himself.

Who granted the loan?

Our latest mortgage was with Ohio Savings Bank. They later sold their mortgages to Wells Fargo Bank, who now holds our loan.

Were you happy with this lender?

We haven't had any problems with either Ohio Savings or Wells Fargo.

Do you have any regrets from the mortgage shopping process?

I would never recommend an interest-only loan. We were led to believe that we wouldn't have to worry about refinancing for at least 5 years, and then had to refinance within the year and pay a penalty for selling the loan too soon. Our biggest regret is refinancing in the first place. If we had kept our original mortgage and interest rate, we would be much further along right now, without the early refinancing penalties.

Best Mortgage Advice...

Ask around for a good mortgage broker referral. Find a bank or a broker that you can trust to work in your best interest! I would also recommend not to buy the most expensive house that you can afford. Buy something for less than that amount because you never know what changes might come about and it will allow you to save.

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