Common Mortgage Misconceptions You Must Know

Credit score informationOn June 13, Tuesday, national averages of mortgages inched higher. Both the 30-year and 15-year fixed mortgages crawled up two basis points to 4.06 and 3.44 percent respectively. The 5/1 adjustable-rate mortgage, however, remained at 3.85 percent. Before you talk to lenders who offer mortgages in Fort Myers, read this first.

Coming Volatility

Although little movement characterized mortgage rate averages on Tuesday, you can still expect for greater volatility in the coming days. Any of the following several factors can cause mortgage rates to rise or fall: the Federal Reserve’s plan and economic outlook, the fallout from the U.K.’s recent general election, and more.

Common Misconceptions

With coming greater mortgages volatility, you who are looking for the perfect mortgage rate better stick with your Fort Myers lender. As you wait for that perfect rate, however, now may be a great time to dispel some misconceptions you may have about mortgages. These misconceptions can cost you in the end if you push through with your mortgage.

Credit Score Still Matters

Some people have gotten the idea that the mortgage approval is the only thing that matters and not their credit score. Unfortunately, although you can still get approval with a less than stellar score, the truth of it remains that the higher your score, the better the rate you get. You can take the time to boost your score if you truly want to get a perfect mortgage rate.

Total Your Costs

You may have heard from financial advisers that your monthly payment should stay within 30 percent of your income. Now, you may have confused only your mortgage payment with the 30%. In reality, the 30% must include not only your mortgage payment but also other housing costs as well such as property taxes and homeowner’s insurance.

Other misconceptions people may have included a 30-year mortgage being the best mortgage, or it is fine not to make a 20% down payment. All these misconceptions can cost you thousands of dollars if you fail to understand mortgages.

You can do more research as you wait for the perfect rate to prevent wrong decisions from costing you.