Top 10 Mortgage Myths That Could Cost You Thousands
- Alexi Mencio
- Aug 28, 2025
- 2 min read
When it comes to buying a home, misinformation spreads quickly. From “you need 20% down” to “the lowest rate is always the best,” mortgage myths can hold you back — or even cost you money.
At Trust Lending, we’re committed to providing borrowers with the facts so they can make informed financial decisions. Let’s break down the top 10 mortgage myths you should stop believing right now.
1. You Need 20% Down to Buy a Home
✅ False! Many loan programs allow you to put down much less. FHA loans require as little as 3.5%, and VA loans often require no down payment at all.
2. You Must Have Perfect Credit
✅ Not true. Programs like FHA and VA loans are designed to help buyers with less-than-perfect credit. Even with a score in the 600s (or sometimes lower), you may still qualify.
3. Renting Is Always Cheaper Than Buying
✅ Not necessarily. While renting may seem cheaper upfront, mortgage payments build equity over time, which means you’re investing in your future instead of your landlord’s.
4. The Lowest Interest Rate Is Always the Best Deal
✅ Rates matter, but so do closing costs, points, and loan terms. A slightly higher rate with lower upfront fees could actually save you more over time.
5. You Can’t Get a Mortgage If You’re Self-Employed
✅ Wrong again. Self-employed borrowers may need to show more documentation, but Trust Lending specializes in helping entrepreneurs, freelancers, and business owners get approved.
6. Pre-Qualification and Pre-Approval Are the Same
✅ They’re different. Pre-qualification is an estimate. Pre-approval means a lender has reviewed your income, credit, and assets, giving you stronger buying power when making an offer.
7. You Should Always Choose a 30-Year Mortgage
✅ Not always. While 30-year loans keep payments lower, shorter terms like 15-year mortgages can save you tens of thousands in interest if you can afford higher monthly payments.
8. You Can’t Refinance Unless Rates Drop Significantly
✅ False. Refinancing isn’t only about rates — it can lower payments, help consolidate debt, or unlock cash from your home’s equity.
9. You Should Wait Until You Have Zero Debt
✅ Nope. Many buyers qualify even with student loans, car payments, or credit cards. Lenders look at your debt-to-income ratio, not just your total debt.
10. All Lenders Are the Same
✅ Definitely not. Some lenders treat you like a number, while others — like Trust Lending — provide personalized guidance, competitive programs, and a commitment to your success.
Don’t let myths stop you from becoming a homeowner or saving money on your mortgage. The truth is that, with proper guidance, homeownership is more achievable than most people think.
At Trust Lending, we cut through the confusion, bust the myths, and help you find the loan that fits your life.
Comments