Mortgage Home Loan MYTHS 2019 | Top 5 Mortgage Myths When Buying a Home

Mortgage Home Loan MYTHS 2019 | Top 5 Mortgage Myths When Buying a Home

Mortgage loan officer Rich Conlon shares the top five home loan myths that he is seeing in the marketplace.

Have more loan questions? Looking to buy a house in the DMV (Washington D.C. Metro area)?
You can reach out to Rich directly:
Rich Conlon
Loan Officer
Atlantic Coast Mortgage, LLC
NMLS ID #886522
T 571-234-5746
https://www.atlanticcoast mortgage .com/ loan -officer/richard-conlon/

Top 5 Home Loan Myths in 2019:

0:46 1. You must have a 20% downpayment in order to buy a house. 20% down is not typical and most buyers who purchase homes with a mortgage put down less than 20%. There are programs out there where you are able to put down 15%, 10%, 3.5% and even 0%.

2:39. 2. Credit pulls. Purchasers are worried about multiple dings on their credit if they shop for a mortgage . The CFPB encourages buyers to shop multiple lenders. If you shop for a mortgage , there will only be one inquiry that *could potentially* affect your credit score. Your credit is pulled when you get pre-approved and about a week before settlement.

5:58. 3. The 30-year fixed mortgage is the best program on the marketplace. There is some truth to this but depending on your situation, how soon you’re looking to stay in the residence and future relocation plans, an ARM could be a viable option with a lower interest rate.

7:53 4. An online lender always has the lowest interest rate. It comes down to your goals in the process. A lower rate may come with dealing with a call service, 800 numbers, weak communication, a longer closing period and a weaker offer in a competitive offer situation (compared with someone using a local lender).

10:50. 5. Making an extra payment on your mortgage is a great way to pay your mortgage quicker. Making an extra payment will save you a significant amount of interest in the long-run. However, if you’re not planning to stay in the property for 20+ years, could your money be spent better elsewhere with a higher return? If instead of making the extra payment, you invest in the stock market, other investments or put into a rental property (for example) your return could potentially be higher than the end result of a quicker loan term. It will depend on your financial situation and what you’re looking to accomplish.

Are you interested in purchasing or selling in the Northern Virginia area? You can reach out to Matt directly here:

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Matt Leighton – Arlington VA Real Estate Agent
Licensed in VA and D.C.
Century 21 Redwood Realty
1934 Wilson Blvd
Arlington, VA 22201


Comments (8)

  1. If you are going to make a video… please…. make sure your video and audio are aligned. Why do you dress sharp? To project an image. Same with your video.

  2. I refinanced my home mortgtage and as I had my credit pulled by the loaner they told me because I'm under 740 (actually at 736) fannie mae guidelines dictate that I cannot have a current rate and I will be penalized a percentage. Example: current rate is 4.6 for non fha 30 year fixed. They said I will be at 5.8 percent because i'm under 740. Is this legit? Seems like the loan officer was trying to make more money on the deal for boosting my interest rate. Any info would be appreciated. Thanks.

  3. Matt, take a shot every time Rich says umm. Actually don't, we want you to live

  4. I hope no listens to this person actually.

  5. Enjoying all ur videos much! Newbie here …hehe

  6. 5% down? That doesn't even cover the Realtor commissions.

  7. Thanks for yet another great informative video! Happy Holidays.

  8. First!

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