Simple truth
The truth is simple
The world of homebuying and refinancing is filled with myths and misconceptions that simply aren’t true. That’s something we simply can’t allow. Our simple truths are here to simply set the record straight.
Home Buying
Refinance
Home Buying
1.
You need a down payment of 20% to buy a house.
Nonsense. Hogwash. And poppycock. While a sizeable down payment will help bring down your monthly mortgage payment there are plenty of loan options out there requiring as little as 3% down and in a few special cases 0% down.
Myth
2.
You should always choose the lender with the lowest rate.
Always is a strong word. The lowest rate in town might be an awesome opportunity. It might also have quite a few hidden fees. Before you go with the lowest rate you see, we highly suggest that you ALWAYS do your homework.
3.
Buying a home is a life sentence.
A life sentence of awesomeness, maybe. Not to mention financial freedom and consistent year after year increases in value. But you’re not handcuffed to it. You can sell anytime. Or, make it a rental property that earns you extra money every month.
Myth
4.
You don’t need a real estate agent.
You don’t need a dentist to pull a tooth either. But who’s going to ask you to open wider, please? A realtor is your advocate, local market expert and negotiating ninja all wrapped up into one. We recommend using a realtor and never doing your own dentistry.
5.
Adjustable-rate mortgages (ARM) are always a bad idea.
There’s that pesky word always again. Under the right circumstances, an adjustable-rate mortgage is a great loan option. For example, if you only plan to be in your home a few years an ARM could save you big time on interest.
1.
You need a down payment of 20% to buy a house.
Nonsense. Hogwash. And poppycock. While a sizeable down payment will help bring down your monthly mortgage payment there are plenty of loan options out there requiring as little as 3% down and in a few special cases 0% down.
2.
You should always choose the lender with the lowest rate.
Always is a strong word. The lowest rate in town might be an awesome opportunity. It might also have quite a few hidden fees. Before you go with the lowest rate you see, we highly suggest that you ALWAYS do your homework.
3.
Buying a home is a life sentence.
A life sentence of awesomeness, maybe. Not to mention financial freedom and consistent year after year increases in value. But you’re not handcuffed to it. You can sell anytime. Or, make it a rental property that earns you extra money every month.
4.
You don’t need a real estate agent.
You don’t need a dentist to pull a tooth either. But who’s going to ask you to open wider, please? A realtor is your advocate, local market expert and negotiating ninja all wrapped up into one. We recommend using a realtor and never doing your own dentistry.
5.
Adjustable-rate mortgages (ARM) are always a bad idea.
There’s that pesky word always again. Under the right circumstances, an adjustable-rate mortgage is a great loan option. For example, if you only plan to be in your home a few years an ARM could save you big time on interest.
Helpful articles
5 New year’s Resolutions that Can Help you Buy a Home
zillow.com
Nobody really knows the words to Auld Lang Syne
That’s because they only play it once a year. New Years is all about starting fresh and making plans. If buying a home is one of them, then these simple New Year’s resolutions can help you make it happen.
How Much are Closing Costs
realtor.com
Rollie Fingers had an awesome mustache, a cool name and was a great closer.
It’s a baseball thing. But in homebuying, being a great closer can save you money. The key is in the preparation. Check out this link for some great tips about what to expect in terms of closing costs and how to maybe strike a few of them out.
How Much Is a Down Payment on a House?
zillow.com
Home is where the mortgage is.
More importantly, it’s where your financial freedom resides. Think of your down payment as an investment in that financial freedom. And even if your investment is as small as 3%, it will grow over time into your greatest asset.
Frequent Frequently asked questions
Buying a home
Refinance
1.
You need 20% equity to refinance.
100% not true. While loans with less than 20% equity may require mortgage insurance, refinancing could still be a good move for you. Particularly if it saves you money in the long run over the life of the loan.
Myth
2.
You must reach the “break-even point” on your current loan.
Point Break is an awesome movie. But the break-even point on your mortgage is awesome too. It’s when you’ve recouped your original closing costs. But you don’t need to reach it in order to potentially benefit from a refi. Utah, get me two!
3.
You can only refinance your mortgage once.
Refinancing is all you can eat. You can do it as many times as you like. However, the fees are significant, so it pays to ensure each refi makes sense. Use a refinance calculator to see if this is a route you want to take.
Myth
4.
You won’t save that much money by refinancing.
A penny saved is a penny earned. If you were to reduce your rate by just 1/8th of a percent, you could save tens of thousands of dollars over the life of your loan. That’s a lot of pennies.
5.
Applications require a lot of documents.
Not true. Applications require a TON of documents. But with our No Sweat™ Process we streamline the paperwork and do all the heavy lifting for you. Plus, if you’ve worked with us in the past, we may just need to ask you a few simple questions.
1.
You need 20% equity to refinance.
100% not true. While loans with less than 20% equity may require mortgage insurance, refinancing could still be a good move for you. Particularly if it saves you money in the long run over the life of the loan.
2.
You must reach the “break-even point” on your current loan.
Point Break is an awesome movie. But the break-even point on your mortgage is awesome too. It’s when you’ve recouped your original closing costs. But you don’t need to reach it in order to potentially benefit from a refi. Utah, get me two!
3.
You can only refinance your mortgage once.
Refinancing is all you can eat. You can do it as many times as you like. However, the fees are significant, so it pays to ensure each refi makes sense. Use a refinance calculator to see if this is a route you want to take.
4.
You won’t save that much money by refinancing.
A penny saved is a penny earned. If you were to reduce your rate by just 1/8th of a percent, you could save tens of thousands of dollars over the life of your loan. That’s a lot of pennies.
5.
Applications require a lot of documents.
Not true. Applications require a TON of documents. But with our No Sweat™ Process we streamline the paperwork and do all the heavy lifting for you. Plus, if you’ve worked with us in the past, we may just need to ask you a few simple questions.
Helpful articles
Should You Refinance Your Mortgage?
realtor.com
It’s like giving your mortgage a sequel.
But unlike the movies, the second one is always better. Refinancing is a great way to lower your monthly payment, pay off your loan sooner or even pay for college. Check out this article for great tips on getting the most out of your refi.
5 Types of Refinance Loans
zillow.com
Available in a wide variety of flavors.
When rates go low everyone starts talking refi. Did you know that there are five different types of refinance loans? This article takes you through each of them so you can learn more about which may be right for you.
8 Refinance tips the Will Save You Time and Money
mint.com
You dominate on the pickleball court.
Or maybe your lawn is the greenest on the block. Everyone has their thing. But being great at refinancing can send you home with more money in your pocket. Here are some helpful tips that will save you time and money on your refi.