It’s time to clear up some misconceptions about mortgages. First of all, your middle credit score is going to be the number used to base your rates one, not the highest of the three. When applying with a co-borrower, the lower score will be used except in very rare circumstances. Rates that are quoted to you are subject to change daily until a rate is locked in with proper documentation. Fixed rate mortgages used to be the safe option after the 2008 financial crisis, but today locking in a mortgage based on your projected time in the home may benefit your interest payoff. Realtors and mortgage lenders are not legally allowed to refer clients to one another by paying fees but that doesn’t mean your realtor won’t have a preference for a lender. Often times realtors will know of the credible lenders in the area that are familiar with the laws and practices of real estate. If you are looking to avoid mortgage insurance you can “piggyback” your home loan by financing the excess loan amount of the home with a second loan in addition to the first loan covering 80% of the homes value.
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5 Mortgage Misconceptions Set Straight