Mortgage Myths
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Common Myths about a Mortgage
First Myth - Mortgages are only for rich people
This is perhaps the biggest misconception about a mortgage. If you
are paying rent right now, then you most likely can afford a mortgage. A
mortgage is not only for those who are rich, but indeed part of the
secret to wealth lies in investment in a mortgage. So, it is more likely
that those who are rich are as a consequence of having acquired a
mortgage and not the other way around.
are paying rent right now, then you most likely can afford a mortgage. A
mortgage is not only for those who are rich, but indeed part of the
secret to wealth lies in investment in a mortgage. So, it is more likely
that those who are rich are as a consequence of having acquired a
mortgage and not the other way around.
Second Myth - I cannot afford a Mortgage
Most people dismiss the idea of owning their home because they believe
that they cannot afford it. They are wrong most of the time. In fact studies
have shown that buying a property can actually be less costly than paying
rent. One expert has estimated that for every $1,000 you pay in rent you
are able to support approximately $160,000 worth of mortgage. So if your
monthly rent is $2,000 you may be in a position to purchase a mortgage
of up to $320,000.
that they cannot afford it. They are wrong most of the time. In fact studies
have shown that buying a property can actually be less costly than paying
rent. One expert has estimated that for every $1,000 you pay in rent you
are able to support approximately $160,000 worth of mortgage. So if your
monthly rent is $2,000 you may be in a position to purchase a mortgage
of up to $320,000.
Third Myth - How will I afford the down payment?
Perhaps this is the number one reason why most people never purchase
their own homes. They think they cannot afford the down payment. But
that is simply not correct. People are buying homes with as little as 5%
down payment because there are financial avenues that can be used to
assist first-time homeowners. When you consult some of the mortgage
quoters we recommend you may be surprised how easy it really is.
their own homes. They think they cannot afford the down payment. But
that is simply not correct. People are buying homes with as little as 5%
down payment because there are financial avenues that can be used to
assist first-time homeowners. When you consult some of the mortgage
quoters we recommend you may be surprised how easy it really is.
Fourth Myth - My credit rating is too poor
Obviously, poor credit rating is not something to be happy about.
However, many banks would consider providing a mortgage to people
with a poor credit if they have jobs and are able to provide proof of their
incomes.
However, many banks would consider providing a mortgage to people
with a poor credit if they have jobs and are able to provide proof of their
incomes.
Fifth Myth - There is no government support
Actually, in many countries governments want their citizens to become
homeowners and they actively pursue this with public policy that makes it
possible. In the United States the Department of Housing and Urban
Development provides extensive information on programs that citizens
can qualify for in securing a mortgage.
homeowners and they actively pursue this with public policy that makes it
possible. In the United States the Department of Housing and Urban
Development provides extensive information on programs that citizens
can qualify for in securing a mortgage.
So, why not consider talking to a mortgage quoter today or work out what
a mortgage is going to cost you using a mortgage calculator? You may be
amazed how easy it is to secure your mortgage and have it financed. Most
of the quoters can also suggest resources for financing your down
payment.
a mortgage is going to cost you using a mortgage calculator? You may be
amazed how easy it is to secure your mortgage and have it financed. Most
of the quoters can also suggest resources for financing your down
payment.
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