Monday, May 20, 2013

10 Mortgage Misconceptions That Could Cost You Money

mortgage agreement


10 Mortgage Misconceptions

By Alison Paoli

We have produced our own lists of myths and recommendations, but we were so impressed with Alison's list, that we have done a short version of it here.  To read her entire list and all the details go to AOL Real Estate.

Mortgages are tricky and often hard to understand. Because most people only purchase a home every five to seven years, prospective homebuyers understandably don't spend a lot of time in the interim educating themselves about mortgages and the mortgage process.

With the real estate market picking up and mortgage rates prime for refinancing, Zillow has compiled a list of common mortgage misconceptions based off the results of the just released 2013 Mortgage IQ Survey.

Misconception No. 1: Your interest rate reflects the true cost of your mortgage. Your annual percentage rate is actually the figure that represents the true cost of your mortgage. It is inclusive of your interest rate, points, mortgage insurance (when applicable) and other fees, including origination and underwriting fees. It does not include the cost of your homeowners insurance policy. The APR is typically higher than your interest rate because it incorporates the rate and the fees. In fact, when shopping for a mortgage, it is best to compare loans based on APR instead of the interest rate because it gives a better sense of the total cost over the life of the loan.

Misconception No. 2: Mortgage rates are only released once per day. Mortgage rates for all types of mortgages can change frequently, sometimes dramatically, throughout the day. Because of the rapid changes in mortgage rates and a lender's ability to control what is offered, it is important to shop around for the best rates. Getting multiple loan quotes is highly recommended.

Misconception No. 3: All lenders are required by law to charge the same fees for appraisals and credit reports. There are no laws that require lenders to charge the same fees for services such as appraisals or credit reports. In fact, in order to make their loan quotes more competitive, some lenders may waive charges for such services. Conversely, some lenders may charge higher fees for these services, so it's important to shop around.

Misconception No. 4: I must get my mortgage through the same lender I was pre-approved with

For the rest of the story, head over to

If you cruise through this blog, you will find many more insider tips and secrets that will help you maximize your chances for success in the mortgage loan process.   In fact, if you click on the link for mortgage loan process, you can learn a lot about what to expect as you move forward on your loan.

If we can be of any help, don't hesitate to call and ask for Bill Rayman at

New Contact Information for Bill Rayman

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025


The consultation is free, the application is free.  And we will do everything we can to keep all of your costs as low as possible.

Also find helpful mortgage calculators here. 

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  1. Taking out a mortgage is one of the most important financial decisions of one’s life. In such a situation, any kind of misconceptions or errors will lead a massive financial crisis. The misconceptions that are listed here are quite common and there are many people who fall prey to this. In order to avoid any kind of home loan misconceptions, it is important to update and educate yourself about the whole thing before you take out a mortgage. This will help you understand the scams or any other problems attached to your mortgage. You will in turn be able to negotiate with your mortgage lender or underwriter in a better way.

  2. Thanks for your helpful comments, Sara

  3. Profiting into one real estate property somehow could take you into many decision making. Like what you've stated above, the post shows how the location rely on the property investment. Apart from the location, other factors like the population of one state should be consider. Anyway, you have provided such an informative post! Great Job Christy!

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