3 Common Mortgage Myths
Aug 06, 2020 01:01PM
By Dawn Van Nieuwenhuyzen, Senior Mortgage Banker at Plains Commerce Bank
Buying a home
is an important (and sometimes overwhelming) decision. You likely have a few
questions or have heard some things from others who have recently purchased a
home. While many people can give mortgage advice, be sure to turn to an expert
with your home financing question.
Dawn Van Nieuwenhuyzen, Senior Mortgage Banker at Plains Commerce Bank, not only knows the industry but helps us dispel 3 common myths about mortgages.
- Myth #1: You have to have a large down payment to buy a home. Not true! There are a multitude of different loan programs available and each lender has their own guidelines. If a large down payment is not an option for you, you may want to consider an FHA (Federal Housing Administration) loan that requires as little as 3.5% down. And, there are many other factors that determine what type of loan will work best for you.
- Myth #2: A 30-Year Fixed Rate Mortgage is always the best loan option. Not necessarily...It really depends on your personal goals. For example, if you only plan on staying in the home for a few years, you may get more value out of a hybrid Adjustable Rate Mortgage.
- Myth #3: My interest rate will tell me how much I'll have to pay on the loan. Not true. We actually want to look at the Annual Percentage Rate (APR) when comparing different loan programs. The APR includes the interest rate, points and any other applicable fees, so we can look at the pros and cons of each program side-by-side. Sometimes a lower APR requires more cash up front.
With so many misconceptions about mortgages out there, home financing can seem daunting. Dawn and her team take pride in making the home financing process simple.
Dawn Van Nieuwenhuyzen – Senior Mortgage Banker – NMLS #21096 – Plains Commerce Bank