2 BIGGEST MYTHS ABOUT HOME MORTGAGES

 

Separate myth from reality before you begin to comparison shop for your mortgage,

MYTH NO. 1

The best way to shop for a mortgage is to compare interest rates and points.

Reality—What about the APR (annual percentage rate)? If the APR is much higher than the interest rate a red light should go off alerting you that there might be hidden fees in your closing costs. And what about closing costs? There’s the real cost of your loan. The fact is, interest rates and points are only part of the information you need.

MYTH NO. 2

Zero-point loans are always the best loans.

Reality—Every borrower’s financial situation is different. Sometimes it’s better to have a lower interest rate with points; sometimes a zero point loan is the better choice. It all depends on what is right for you. Consult your mortgage broker.

 

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