↑ Return to Knowledge Bank

Mortgage Myths

Myth: If I settle late in the month, I save money on a refinance.

Fact: You will pay interest to your old lender for every day in the month prior to funding the new loan. You will pay your new lender for the remaining days in the month. The sooner in the month that you switch to the new lower rate, the more money you will save.


Myth: It takes weeks to be approved.

Fact: With today’s automation, we can pre-qualify you in a matter of minutes


Myth: If my loan is sold, the terms can change.

Fact: Your mortgage is a binding contract. If it is sold to a new lender, the terms cannot change without your consent.


Myth: The lowest rate with “zero points” is the best deal.

Fact: Often lenders charge exorbitant fees that are actually “points” in disguise. Sometimes it is a “commitment fee” or a “processing fee”. These are even worse than points as they are not even tax deductible.













Permanent link to this article: http://new.0points.com/wp/knowledge-bank/mortgage-myths/