Transform Your Space and Build Wealth: Common Mortgage Myths Debunked

Learn about common mortgage myths that may be holding you back from transforming your space and building wealth through homeownership.

Dispelling the 20% Down Payment Myth

One of the most common mortgage myths is the belief that you need to put down 20% of the home's purchase price as a down payment. While a 20% down payment can help you avoid private mortgage insurance (PMI), there are plenty of loan options that allow for much lower down payments, sometimes as low as 3%. It's important to explore all your options and find the best solution for your financial situation.

The Fixed Rate vs. Adjustable Rate Mortgage Debate

Another prevalent myth is that adjustable rate mortgages (ARMs) are always a risky choice compared to fixed-rate mortgages. While ARMs do come with the potential for rates to increase over time, they can be a beneficial option for homebuyers who plan to sell or refinance before the initial fixed-rate period ends. Understanding the differences between the two types of mortgages and how they align with your homeownership goals is key to making an informed decision.

The Length of the Loan Matters Most

Many people believe that the shorter the loan term, the better. While opting for a 15-year mortgage can save you money on interest in the long run, a 30-year mortgage offers lower monthly payments, providing more flexibility in your budget. It's essential to consider your current financial situation, future plans, and overall financial goals when choosing the length of your mortgage term.