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Myths About Mortgages That Still Fool Homebuyers

September 19, 2025 by Kay Monigold

Buying a home is one of the biggest financial decisions most people will ever make, and the mortgage process can feel overwhelming. With so much information available, it is easy for myths to spread, and many homebuyers still believe ideas that are simply not true. Clearing up these misconceptions can make the path to homeownership less stressful and much more successful.

Myth One: You Need Perfect Credit

A common belief is that only people with flawless credit can qualify for a mortgage. While strong credit helps secure better rates, many loan programs exist for borrowers with less than perfect scores. Lenders look at the overall financial picture, including income, employment history, and debt, which means options are available even if your credit is not ideal.

Myth Two: You Must Have a Large Down Payment

Another myth is that you need 20 percent down to buy a home. Although putting more money down can reduce monthly payments and avoid mortgage insurance, there are many programs that require far less. Some allow as little as three percent down, while others assist qualified buyers with down payment support, making homeownership more accessible than many realize.

Myth Three: Renting Is Always Cheaper

Some buyers believe renting is the more affordable option, but this is not always true. Rent often increases over time, while a fixed rate mortgage offers stable monthly payments. Homeownership also builds equity and can provide long term financial advantages that renting cannot match.

Myth Four: You Cannot Pay Off a Mortgage Early

Many people think they are locked into a 30-year mortgage with no flexibility. Most loans allow extra payments toward principal without penalties. Paying a little extra each month or making occasional lump sum payments can reduce interest costs and shorten the loan term.

Understanding the truth behind these common myths can make homebuyers feel more confident and prepared. By separating fact from fiction, buyers can make smarter choices, explore all available options, and move forward with clarity on the path to owning a home.

Filed Under: Mortgage Tips Tagged With: Home Buying Journey, Mortgage Myths, Mortgage Tips

How Borrowers Can Benefit from Inflation with the Right Mortgage

September 17, 2025 by Kay Monigold

Inflation is a topic that impacts nearly every part of the economy, from the cost of groceries to long term financial planning. For homeowners and those considering a mortgage, inflation can feel intimidating. However, with the right perspective and strategies, borrowers can use inflation to their advantage and create lasting financial benefits.

Understanding the Relationship Between Mortgages and Inflation

Inflation reduces the purchasing power of money over time. While this can make everyday expenses higher, it also works in favor of borrowers with fixed rate mortgages. Since the mortgage payment stays the same each month, the real value of that payment decreases as wages and prices rise. In other words, the loan feels more affordable as time passes.

The Benefit of Fixed Rate Mortgages

One of the clearest ways to benefit from inflation is by choosing a fixed rate mortgage. Unlike adjustable-rate loans, fixed rate options lock in the interest rate for the entire term. As inflation increases, homeowners with fixed mortgages enjoy stable payments while renters often face rising rents. Over the years, this stability can free up more of the household budget for savings, education, or other investments.

Building Equity Faster

Inflation can also accelerate the growth of home equity. As home values rise along with inflation, homeowners often see their property appreciate. While the mortgage balance gradually decreases with each payment, the value of the asset typically grows, creating a stronger financial position. For families, this can mean greater security and more options for the future.

Protecting Long Term Wealth

Real estate has long been considered a hedge against inflation. By owning a home with a stable mortgage, borrowers can protect themselves from some of the challenges that rising costs bring. Monthly payments remain consistent, while the property itself may increase in value over time, helping homeowners preserve and even grow their wealth.

Inflation can create challenges in daily life, but it also presents an opportunity for homeowners. By securing a fixed rate mortgage and thinking long term, borrowers can position themselves to benefit as inflation reduces the real cost of their loan and increases the value of their property.

Filed Under: Mortgage Tagged With: Home Buying Journey, Inflation And Mortgages, Mortgage Tips

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Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

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