Whether you are new to the housing market or are living in your third or fourth home, it’s important to be on the up and up when it comes to mortgages. It is by far, the largest investment most people will make over the course of their lives. However, a new survey released by Zillow has shown that many prospective and current homeowners are misinformed about mortgages.

Here are some of the common misconceptions:

1. One-third of homebuyers were not aware that it is possible to get a home loan with a down payment of less than 5%.

2. Twenty four percent of homeowners incorrectly believe that the best interest rates and fees can always be found their current bank.

3. One-fourth of homebuyers incorrectly believe they are obligated to close their loan with the lender that pre-approved them.

4. One in five borrowers believed they could not refinance if their house is underwater. In fact, more than 2.2 million underwater borrowers have refinanced through HARP.

5. One-half of all homebuyers did not know that interest rates change throughout the day

6. One-third of homeowners incorrectly believe that you must wait 7 years after a short sale or foreclosure before purchasing another home.

What You Can Do

Many prospective homeowners will spend hours haggling over a couple thousand dollars when negotiating their new home’s price and will ignore the importance of finding a right home loan. If a homebuyer can lower their rate by even a half of percentage point, they can save thousands of dollars over the life of their loan.

Work with a lender that will simplify and streamline your mortgage process – On Q Financial. Give us a call today!