Resolving Major Mortgage Myths
The amount of content available today on any topic is staggering. Sometimes all this information can lead to confusion and we don’t get the full story on any one topic. The housing market and home affordability often fall victim to scary headlines. Read on to dispel some major mortgage myths you may be coming across.
Myth #1: Homes Are Not Affordable
While it is true that average home prices are increasing and mortgage interest rates have ticked up slightly, housing inventory is also increasing and interest rates are still near historical lows. Those factors combined with potential tax benefits of owning a home still put homeownership squarely within reach for those who desire it.
Myth #2: You Have to Have Outstanding Credit to Qualify
There are very few people with perfect credit. While your credit score is a player in the qualification process, it is not the only factor that lenders will be looking at. Your income, payment history and credit score all combine to give lenders a picture of your financial health. There are also multiple loan programs available and each one has a set of requirements so working with your Mortgage Consultant and Cambria Mortgage can help you find the right program based on your current situation.
Myth #3: You Must Have 20% For a Down Payment
While having 20% for a down payment is great, it is not the only way to purchase a home. There are multiple programs available for qualified buyers that require as little as 3% down. There are also programs for veterans and those in rural areas that require no money down. On top of these programs, there are also options for borrowers that include down payment assistance. These programs are often part of a county or city initiative and a call to your Mortgage Consultant can help you identify if there is a program available in your area and if you would qualify.
Myth #4: Renting is Cheaper Than Owning
The debate over owning or renting continues to rage. While there are benefits to both, the long-term financial impact of owning a home often puts ownership in the win column. Even with slightly higher interest rates, the tax benefits and appreciating home values provide homeowners with incomparable long-term value. Aside from the financial impact, there are also intangible factors to being homeowners that include pride in ownership and a sense of security.
Call Cambria Mortgage
To get started, call Cambria Mortgage at 952-942-0110 or visit CambriaMortgage.com. Our team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.