07/25/2022
Getting a mortgage can be stressful and time consuming. I am here to help make that process a little more smoother for you.
Today I would like to share some common mortgage misconceptions with you.
1.) Lenders use the best credit score
lenders take the middle of three credit scores (from Equifax, TransUnion and Experian) for each borrower, and then use the lowest score between both borrowers’ “middle scores.” So if your middle score is a 780, but the co-borrower is a 660. We would qualify off of that 660.
2.) The rate you are quoted is the rate you get.
Rates change daily, and sometimes multiple times a day. Unless your rate is locked in, it has the potential to change from what was quoted.
3.) Fixed rate mortgages are always better than adjustable rate mortgages
So before settling on a 30-year fixed, ask yourself this question: How long am I going to own this home (or keep the loan) for?
Suppose the answer is five years. If you got a five-year adjustable rate mortgage (ARM) instead of a 30-year fixed, your rate would be about .875 percent lower. On a $200,000 loan, you’d save $146 per month in interest by taking the five-year ARM. On a $600,000 loan, the monthly interest cost savings is $438
