Debunking Common Mortgage Myths

Special article brought to you by Econ Mortgage

Myth: You Need Perfect Credit to Buy a Home
Your credit score is an important factor in determining whether you qualify for a loan, but your credit does not have to be perfect. There are a wide variety of loan options available for people with lower credit scores, including FHA loans, which are government-backed loans with lower credit requirements than conventional loans. We can even put together a plan to help increase your score or refer you to a great credit repair company.

Myth: You Need a 20% Down Payment
You can get a loan with as low as 3% down, and in some cases, loans are available with 0% down, depending on the loan type. The 20% myth is common because of mortgage lenders’ private mortgage insurance (PMI) requirement. PMI is required if you pay less than 20% down, but it can be removed once you reach 20% equity in the property.

Myth: Mortgage Rates are the Same Everywhere
Borrowers often assume it does not matter where you get your home loan because interest rates and fees are the same. The truth is that rates and fees vary significantly, which is why it is wise to do your research and compare rates to find the best deal. Since we work with many different companies, we can find you the best rate at the lowest cost.

Myth: It is a Bad Idea to Refinance Unless ___ (Insert Reasoning Here)___
Homeowners often think they should only refinance if they are remodeling or trying to take cash out. There is no right or wrong reason to refinance. Get a loan estimate and look at the numbers to determine if the timing is right for you to refinance. We can show you a cost comparison so you can make the best decision for your family.

Myth: Shopping Around for the Best Loan will Hurt Your Credit Score
Comparing home loan offers from different lenders allows you to get the best rates and terms, and multiple credit inquiries for the same loan type will not impact your score if done in a short period of time. If you have a current quote from another lender, contact us so we can show you that WE can beat any quote out there.

Myth: The Mortgage Process is Difficult
Buying a house is a big deal and can often feel overwhelming. Fortunately, here at Econ Mortgage, we have a team that has a wealth of knowledge mixed with experience in streamlining the mortgage process and making the process as simple for our clients as possible.

Who is Econ Mortgage?
At Econ Mortgage, we keep our overhead low and use technology to streamline the mortgage process. We make less profit on each loan, so we can pass the savings on to our clients. Our clients keep coming back because they know we will take care of them and get them the best possible rate at a competitive price.

Our headquarters are here in Syracuse. We are home grown and local to this community, but even more, we love helping our neighbors save money when they refinance or buy a new home. Contact us today for a free quote on your next purchase or refinance.

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