The Top 5 Mortgage Myths That Could Cost You Money
Buying a home is one of the biggest financial moves you’ll ever make, but with so much information floating around, it’s easy to fall for common myths. The problem? Believing these myths could hold you back from owning a home or cost you serious money.
Let’s clear things up. Here are the top 5 mortgage myths you need to know:
Myth #1: You Need 20% Down to Buy a Home
This is one of the biggest misconceptions out there. While putting 20% down helps you avoid PMI (private mortgage insurance), it’s not required.
FHA loans allow as little as 3.5% down.
Conventional loans can start at 3% down.
And programs like Hometown Heroes can even help cover your down payment.
—> Don’t let this myth stop you, plenty of buyers become homeowners without 20% saved.
Myth #2: Only Perfect Credit Scores Get Approved
Nope. While a higher score can get you better rates, there are plenty of loan options for buyers with average or even below-average credit. FHA loans, for example, are designed for people with lower scores.
—> Your credit isn’t the whole story; Income, savings, and debt also matter.
Myth #3: Renting Is Always Cheaper than Owning
Sure, renting can feel easier upfront. But monthly rent payments don’t build equity. With a mortgage, you’re investing in an asset that grows over time. In many areas, a monthly mortgage payment can be close to (or even less than) the cost of rent.
—> Think of it this way: rent pays your landlord’s mortgage, while owning pays your future.
Myth #4: You Can’t Refinance Until Interest Rates Drop Super Low
Refinancing isn’t only about chasing the lowest interest rate. Sometimes, it’s about lowering your monthly payment, switching to a shorter term, or tapping into equity. Even if rates aren’t “historic lows,” refinancing could still save you money.
Myth #5: The Mortgage Process Is Always Complicated and Stressful
It doesn’t have to be. With the right lender (hint: that’s where we come in), the process can actually be smooth and straightforward. We guide you from application to closing, keeping things simple and transparent.
—> The right team makes all the difference.
Don’t let outdated myths keep you from buying or refinancing your home. The truth is, there are more options and resources available than ever before, you just need the right guidance to make the best decision.
We’re here to give you the facts (not the myths) so you can move toward homeownership with confidence. We’ve already helped over 561 families achieve their homeownership dreams… and now that you’re here, we can help you too.
