The mortgage marketplace is full of myths, half truths, and faulty interpretations that result in overpaying thousands of dollars. Doing your homework and researching mortgage offers will help you avoid most of the bad mortgage advice out there. Here is a short list of bad advice the supposed "experts" pass on to unsuspecting homeowners.
Supposed mortgage "experts" are everywhere. In mortgage books, articles on the Internet and in magazines, financial advisors, all have advice for the taking. The problem is, much of this advice bad and results in overpaying. The following list of "advice" you are likely to encounter is simply not true.
o Never prepay your mortgage if your investments accounts are earning a greater return than your mortgage interest rate. Put your cash in these investments to earn the higher rate of return.
One paragraph:o Never purchase a home unless you plan on living in it for at least five years.
o If you have poor credit you will always have to pay a higher mortgage rate.
o Most homeowners should choose a 30 year, fixed interest rate loan when mortgage refinancing.
o Interest rates have no where to go but up since we're at historically low levels.
o Your lender will tell you which mortgage loan is right for your situation.
o Bankruptcy ruins your credit.
o Stay away from Adjustable Rate Mortgages (ARM) when refinancing your mortgage loan.
o Tell your loan rep: "You name the price, I'll name the terms" when negotiating for a new mortgage loan.
You can learn more about mortgage refinancing while avoiding costly mortgage mistakes and bad advice with a free six part mortgage refinancing video tutorial.
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