Welcome to Wise Mortgage Advice, your safe and impartial third party adviser. The process is simple and gets you an impartial review of your biggest financial decision that you will make. We make sure that you know about the loan you are closing before you close.
Introduction
Wise Mortgage Advice is not a loan company. We do not provide financial planning. We do not help with debt consolidation. We are not lawyers. So... What do we do? We review your Mortgage Note and provide you a report summarizing the important details.
The facts speak for themselves. Most mortgage loans that close change drastically from the original proposed loan. Maybe the consumer's financial situation changed. Maybe the local broker was dishonest. Maybe the loan agent misunderstood the consumer's goals and plans. Or, maybe the consumer was "sold" on a loan without really knowing the potential consequences. Do not let this happen to you.
Loan Pitfalls
1) Adjustable Rate Mortgages: The first 2 or 3 years are the fixed interest period. After that, the rate adjusts... almost always upwards. Sometimes the rate goes up 1% to 3% each adjustment. Also, they usually change every 6 or 12 months, but can adjust every month. And, when you refinance after the fixed period ends, you have to pay the thousands of dollars in loan fees all over again.
2) Interest Only Loan: You only pay the interest portion of the loan for the first 5 or 10 years. When the principal portion of the loan increases, your monthly payment will jump considerably. Why would you want to rent your home for 5 or 10 years?
3) Option ARM: There are 3 payment options. If you make the smallest payment, you only pay a portion of the interest. The rest of the months interest gets added to the balance of the loan (increasing the laon balance, not decreasing it). You can pay all of the interest, which also does not decrease your balance. Lastly, you can make the full monthly amoritized payments (payments that decrease the loan balance). What is the most common payment that consumers make on Option ARMS? The smallest payment which increases the loan balance.