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Mortgage Financing – Myths and Half Baked Truths

The market of mortgage financing is full of persons ready to take you for a ride and could cost you dearly in the long run. You must understand why you should not fall prey to these so called ‘expert advisors’ as they are ignorant about the truth of remortgaging themselves.
A bad mortgage or remortgage advice can cost you thousands of your hard earned dollars. Usually by doing a little homework and a little research on the internet you can save yourself from these ‘bad advices’.
 The money market is full of half baked truths, wrong interpretation of terms, myths and the like which should be avoided like plague.
The following list of myths and half-baked truths which should be avoided;
•    Never use the prepayment option of your mortgage if your extra cash is invested at a higher rate of return than your interest paid on the mortgage
•    Do not purchase a house using mortgage finances if you do not plan to live in it for atleast five years.
•    Persons having bad credit score will always pay a higher interest rate.
•    Choose the 30 year tenure with fixed interest rates
•    Interest rates will not fall as we are already at the lowest level
•    Ask your lender to suggest which scheme is the best for you
•    Do not go for variable repayment scheme
•    Bankruptcy will not allow you to get any kind of loan
•    There are no negotiations in the mortgage market.
There are a huge lot of myths listed above which you need to keep safe distance from.  One mistake and you end up loosing a good sum of money in extra hidden costs. It is always advisable to ask for written quotes with full terms and condition of the mortgage. Make a sensible selection and then choose you lender.