I’m here to dispel some mortgage myths that have been spreading like wildfire. Let’s get ready to separate fact from fiction with some mortgage myth-busting!

Myth #1: You need to be Scrooge McDuck to buy a house!

Reality: Unless you’re a cartoon duck with a vault of gold coins, you don’t need a massive down payment to get a mortgage. There are plenty of options available with lower down payment requirements, so don’t let this myth hold you back from achieving your dream of homeownership.

Myth #2: Refinancing is a fairy tale!

Reality: You don’t need to wait for a fairy godmother to magically lower your interest rate. Refinancing can be a smart financial move, even if rates don’t drop significantly. Whether you want to shorten your loan term, switch from an adjustable to fixed-rate mortgage, or take cash out of your home’s equity, there are many options available.

Myth #3: Your credit score needs to be as high as Superman can fly!

Reality: You don’t need to be faster than a speeding bullet or more powerful than a locomotive to get approved for a mortgage. While having good credit can help, there are still plenty of lenders who offer loans to borrowers with lower credit scores.

Myth #4: A 30-year mortgage is the only way to go!

Reality: While a 30-year mortgage may be the most common, it’s not always the best fit for everyone. Depending on your financial goals, a shorter term mortgage could save you a lot of money in interest over time. Don’t get stuck thinking there’s only one option available.

Myth #5: The interest rate is the only thing that matters!

Reality: While interest rates are important, they’re not the only thing you should consider when choosing a mortgage. You should also look at the type of loan, the length of the term, and any fees or closing costs associated with the mortgage. Additionally, you should make sure you’re working with a reputable and reliable lender.

Myth #6: Going interest only allows you to borrow more!

Reality: Well, if you believe this myth, you might as well believe in unicorns and leprechauns. In reality, lenders determine affordability based on the remaining term after the interest-only period. So, if you opt for interest-only, you’ll end up being able to borrow less – which is like saying you’ll win the lottery by not buying a ticket!

Myth #7: Comparison rates are the most important factor!

Reality: Ah yes, the comparison rate – the golden goose of home loans! But here’s the reality check – a comparison rate is only correct if you borrow exactly $150k for 25 years. That’s like saying you can find true love by swiping right on every dating app. Sorry to break it to you, but 99.999% of the time, a comparison rate is useless.

Myth #8: You’ll have a better chance of approval if you apply with your own bank!

Reality: If you think loyalty means anything to banks, you’re in for a rude awakening. Sure, you may have been banking with them since the days when Spice Girls ruled the charts, but if you don’t meet the metrics on their Excel spreadsheet, your 20-year banking history won’t be worth a hill of beans. In fact, you’ll have a better chance of winning the lottery by buying a ticket from a different newsagent every week.

Myth #9: Taking out personal loans and credit cards will help you build your credit score.

Reality: Well, you might as well build a house of cards and expect it to withstand a hurricane. Taking out personal loans and credit cards can actually hurt your credit score. That’s right – the complete opposite of what the myth suggests. So, unless you want to sink your credit score faster than the Titanic, it’s best to avoid taking out loans and credit cards willy-nilly.

Well, well, well – look who’s the myth-busting master now! Not only did we bust five mortgage myths, but we also busted four more on top of that. It’s like playing Whac-A-Mole, but with mortgage myths. We just can’t help ourselves. So if you need any more myths busted, just give us a call – we’ll be here with our hammers and hard hats at the ready!