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Mortgage Myths

Getting a mortgage is a very big step in life and you want to be well informed when getting one. JTS & Co. is here to debunk the common mortgage myths for you!

 

Myth #1: You must have a 20% down payment.

 

This is a long-believed myth that simply is not true. Several of our loan programs offer a low-down-payment option or a NO down payment option. Requirements vary based on programs so please consult your lender to see specifics.

 

Having a 20% down payment is a good option. That large down payment removes the mortgage insurance premium off your loan.

 

Myth # 2: Pre-qualification is loan approval.

 

Pre-qualification is a preliminary look at all of your information to see what you are eligible for. Having a pre-qualification letter when looking at homes shows that you have a good chance at getting the loan but is not a guarantee.

 

Myth #3: You cannot pay off your mortgage early.

 

You can make an additional payment each year to shorten your payment period. On a traditional 30-year loan, you can make the 13th payment each year and finish the loan 4 years and 11 months sooner than you would without it.

 

Using your tax refunds for this additional payment would be a great use of the extra cash.

 

Contact Us!

 

If you are looking to start your homeownership journey but have no idea where to start, call us today and talk to one of our licensed mortgage loan officers.