5 Big Myths About Your New Mortgage
1. The interest rate is always the most important consideration. Yes, the interest rate on your new mortgage is important, but the type of loan you’re getting—and the terms of that loan—can be just as important. Also, don’t overlook the value of your mortgage professional. Choosing the right broker or lender can be extremely important.
2. Interest rates are the same everywhere. Another common myth about interest rates is that rates are the same everywhere. In reality, mortgage rates can vary between different lenders and banks and can also vary in different areas of the country. Whenever you see news reports about how the rates went up or down, keep in mind that the rates being talked about come from national surveys.
3. A 30-year fixed-rate mortgage is the best loan. Just because a 30-year fixed-rate mortgage is the most common loan, that doesn’t mean it’s the right loan for you. There are plenty of different types of loans available—with different terms, different requirements and different interest rates—and one of these loans may be a much better option for you, depending on your personal and financial needs.
4. You’ll need to make a 20 percent down payment. Although the amount that you’ll need for a down payment will depend on your credit and other factors, mandatory 20 percent down payments are a thing of the past. Yes, putting 20 percent down may help you avoid private mortgage insurance, but there are plenty of low-down payment options available including FHA loans and VA loans.
5. You can’t buy a home if you have bad credit. This may be the biggest myth about financing. While it’s true that there are minimum requirements for getting a mortgage, many loans—such as FHA loans—may be available to borrowers with lower credit scores. Plus, most lenders are flexible enough to offer creative financing to meet a borrower’s needs.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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