When it comes to mortgages, there’s no shortage of misconceptions—and believing them can cost you thousands of dollars or cause unnecessary stress. Whether you’re buying your first home, upgrading, or refinancing, it’s essential to separate fact from fiction. Here are some of the most common mortgage myths I hear—and the truth behind them.
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🏠 Myth #1: You Need a 20% Down Payment to Buy a Home
Truth: While putting 20% down helps you avoid private mortgage insurance (PMI), many loans require far less. First-time homebuyer programs, FHA loans, and VA loans often allow down payments as low as 3%. Waiting to save 20% might delay your dream of homeownership unnecessarily.
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💳 Myth #2: You Must Have Perfect Credit to Qualify for a Mortgage
Truth: While higher credit scores secure better rates, many lenders work with borrowers who have less-than-perfect credit. There are loan programs designed to help people rebuild their financial footing while still purchasing a home.
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🔑 Myth #3: Getting Pre-Approved and Pre-Qualified Are the Same Thing
Truth: Pre-qualification is a basic review of your finances, often without verifying your documents. Pre-approval, on the other hand, involves a deeper financial dive and carries more weight with sellers. If you’re serious about buying, pre-approval is the way to go.
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💵 Myth #4: Refinancing Isn’t Worth It Unless You Can Drop Your Rate by 1%
Truth: Even a 0.5% reduction in your rate can result in significant long-term savings—especially for larger loan amounts. Refinancing can also help you shorten your loan term, switch to a fixed-rate mortgage, or tap into home equity.
👉 See how much you could save with a refinance with our Refinance Calculators!
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📆 Myth #5: You Should Pay Off Your Mortgage as Quickly as Possible
Truth: While being debt-free sounds appealing, it’s not always the smartest financial move. You may be better off investing extra money elsewhere, especially if your mortgage rate is low. (Of course, this depends on your overall financial goals.)
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📝 Myth #6: Once You’re Approved, You’re Set—Nothing Can Go Wrong
Truth: Lenders recheck your financials before closing. Taking out a new credit card, buying a car, or changing jobs after approval can derail your mortgage. Keep your finances stable until the keys are in your hand.
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🏡 Myth #7: Refinancing Costs Too Much to Be Worth It
Truth: Refinancing costs vary, but many homeowners recoup expenses through lower monthly payments or improved loan terms. With us at Jumbo Loan Experts, we offer low-cost refinancing with maximum transparency—often with no upfront fees.
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💬 Final Thoughts:
Navigating the mortgage process doesn’t have to be overwhelming—but misinformation makes it harder than it needs to be. By busting these common myths, I hope to make your home buying or refinancing journey smoother and more informed.
👉 Got questions or need personalized advice? Let’s connect! I’m here to help you make the smartest mortgage decision for your needs.
🔑 Ready to take the next step?
✅ Homebuyers with a signed contract, start here!
✅ Looking to refinance? Check your options here!
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