Boston Realtor Mike Mahoney
Michael Mahoney
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Posts Tagged ‘Myths about Mortgages’

7 Myths About Mortgages Today

April 24th, 2019 by Michael Mahoney

Mortgage Myths by Thea Simolari of The Mortgage Network7 Myths About Mortgages Today

#1 You need 20% down- There are MANY programs that allow you to put as little as 3% down. This can be less money than putting – First, last and security deposit on a rental.

#2 The Lender with the best rate is where I should go. This is very misleading- You want to be sure the there is a Mortgage Officer that answers your calls and communicates well with all parties involved. Can they meet your commitment and closing dates? There are many steps in the mortgage process – you need a reliable lender- not the one with the lowest rate

#3 A 30 year fixed is the best. How long do you plan on staying in your new home? Is it a starter home where you will be there less than 5 years then upgrade? Or are you are in the area for work/school for a few years? Maybe you should consider an Adjustable Rate mortgage- The rates are typically less than a 30 year fixed. You could save more money with and Adjustable Rate

#4 If I start working Overtime or start getting bonuses- I can use that towards my income. Most Mortgage products require that you have been getting overtime and bonuses for at least 2 previous years from the SAME employer.

#5 “I have to save the money for down payment” You can have 100% gift funds for most mortgage programs. Family members can give you ALL the funds to buy a home.

#6 Non-Owner Occupant cosigners can be the sole income provider for your home. You may be a student and not making much income- Your Parents can cosign and buy that condo for you as Owner Occupied. Or you have elderly parents that need a smaller place- the adult children can Co-Sign

#7 A cosigner with good credit score can “compensate” for another’s low credit score- Good Credit is VERY important for everyone on the mortgage- A co-signer’s good credit does not help someone else’s low credit score

It is always best to speak with a Lender few months before thinking about buying a home and find out what is best for your individual situation.

Mortgage Rates Rise Again, But Remain Below Yearly Lows

National Mortgage Rates

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The above was provided by Thea Simolari of the Mortgage Network.

 

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