Rates are flat once again today in general, but mortgage bonds are still on a rollercoaster ride. We are in the negative territory (rates heading up) today but not enough to change rates. Mr. Bernanke is giving a speech today. That could move the market depending on his remarks. If you’re looking for comparison rates with no lender fees, look for 4.375% on a 30 year fixed, 3.625% on a 15 year fixed, and 2.875% on a 5/1 ARM (click here to get the details).
One of the most frustrating things for me is when people spread misinformation. For whatever reason, sometimes bloggers, news outlets, and even industry professionals share wrong information that they get. It hurts all of us.
In an effort to combat this kind of misinformation in the real estate industry, I’ve come up with the top five mortgage myths I see out there right now:
- You need a large down payment to buy a home.
- Nobody can get a loan because underwriting is too strict.
- You need perfect credit to get a loan.
- Lenders won’t give a loan for a foreclosure property in poor condition.
- Renting is cheaper than buying a home.
I explain each one in today’s video:
I found a great article that offers advice about what to ask at a open house. Good stuff! Check out the full article by clicking here.
These are the top five myths about mortgages that I see right now:
1. You need a large down payment in order to buy a home. Wrong!
You can buy a house today anywhere with zero down on a USDA and VA home loan, 3.5% on a FHA loan and 5% on a conventional mortgage.
2. Nobody can get a loan because underwriting is to strict. Wrong!
Underwriting does require extra documentation than in years past but it is still very possible to get your loan through underwriting. Assuming you don’t have anything to hide.
3. You need perfect credit to get a loan. Wrong!
It helps but you can still get a loan with a 620 score with little money down. You may have a few more underwriting conditions than a 700 score borrower but it is still very possible.
4. Lenders won’t give a loan on a foreclosure property in poor condition. Wrong!
That is what an FHA 203K loan is for. It will allow you to purchase the house “as is” and escrow for repairs. You can even get appliances with this loan.
5. Renting is cheaper than buying a home. Wrong!!
With rates and home prices this low it is a lot cheaper to buy than rent.Don’t be fooled by misinformation. I would love to have you help me fight back by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!
See you tomorrow!
PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002