Money Smarts Blog

Buying a home shouldn’t feel like walking through a haunted house. You deserve a smooth path, not a spooky one. But when it comes to mortgages, myths and misconceptions can creep in like ghosts in the night. Let’s shine a flashlight on some of the scariest ones and send them back to the graveyard.

The Phantom Down Payment

Myth: You need 20% down to buy a home.
Truth: That number isn’t carved in stone. While 20% helps you avoid private mortgage insurance (PMI), plenty of loans allow for much smaller down payments, sometimes as little as 3–5%. That means you don’t have to spend years saving before you start shopping for a home. In fact, many first-time homebuyer programs are designed specifically to help people get into a house sooner, without draining their savings.

The Credit Score Curse

Myth: Your credit has to be perfect.
Truth: A glowing credit score is nice, but it’s not required. Lenders look at your overall financial picture, things like income, debt, and savings, not just a single number. Even if your credit isn’t where you want it, you may still qualify for a mortgage. And if you do need a boost, there are steps you can take to improve your score, like paying bills on time, lowering balances, and avoiding new debt. The curse can be broken!

The Renting Spell

Myth: Renting is always cheaper than buying.
Truth: Renting may feel easier in the short term, but with a mortgage, you’re building equity and long-term stability. When you rent, your money goes straight to your landlord… poof, gone like smoke. With a mortgage, your monthly payments are an investment in your future. Plus, with fixed-rate loans, your payments won’t jump around like rent often does. Over time, owning a home can be the sweeter (and smarter) treat.

The Never-Ending Process

Myth: Mortgages take forever to close.
Truth: Thanks to modern tech, the days of drowning in endless paperwork are long gone. Online applications, e-signatures, and secure document sharing make the process faster and more convenient than ever. While every loan is different, many closings happen within just a few weeks. With the right guidance from your lender, the process doesn’t have to feel like an endless haunted maze. It can actually be straightforward and stress-free.

The “Wait Until You’re Ready” Trap

Myth: You should hold off until you’re 100% ready.
Truth: No one ever feels totally prepared for a big step like buying a home. The good news? You don’t have to figure it out alone. A mortgage lender can walk you through your options, explain what you can afford, and even help you plan for the future if now isn’t the right time. Sometimes the scariest part is just getting started, but the sooner you ask questions, the sooner you’ll feel ready to sink your teeth into homeownership.

Bonus Myth: The Creepy Crystal Ball
Myth: You should wait to refinance until rates drop.
Truth: Trying to time the market is like staring into a foggy crystal ball… no one can predict when (or if) rates will fall. You might hold out for a “treat,” only to get tricked if rates creep higher instead.

Refinancing isn’t just about chasing the lowest possible rate. It can help you lower your monthly payment, shorten your loan term, or tap into your home’s equity, even if rates aren’t at historic lows. The smartest move is to look at your unique situation and goals, not the guesswork of timing.

Refinancing myths aside, the biggest truth is this: mortgages don’t have to be a nightmare. Once you shine a light on the facts, the path forward isn’t nearly as spooky as it seems. With the right guidance, you can make confident decisions, whether you’re buying, refinancing, or just starting to explore your options.

Ready to slay those mortgage fears? Our team is here to help you banish the ghouls and unlock the door to your new home.