Top 10 Mortgage Myths That Could Cost You Thousands
- Alexi Mencio
- Sep 5, 2025
- 2 min read
When it comes to mortgages, misinformation is everywhere. Unfortunately, believing the wrong advice can cost you time, money, and even your chance at homeownership.
At Trust Lending, we’ve heard it all — and we’re here to set the record straight. Here are the top 10 mortgage myths every borrower should know.
1. You Need a 20% Down Payment
Truth: Many programs allow as little as 3% down (Conventional) or 3.5% down (FHA). VA loans even allow 0% down.
2. You Must Have Perfect Credit
Truth: While higher scores unlock better rates, FHA, VA, and other programs allow for lower credit scores and flexible guidelines.
3. Renting Is Always Cheaper Than Buying
Truth: Monthly rent payments build no equity. In many markets, owning a home with a mortgage can actually cost less than renting over time.
4. You Can’t Refinance Unless Rates Drop Significantly
Truth: Refinancing isn’t just about interest rates — it can also lower payments, shorten loan terms, or access equity through cash-out options.
5. Pre-Qualification Equals Pre-Approval
Truth: Pre-qualification is just an estimate. Pre-approval involves verifying documents and gives you real buying power when making offers.
6. You Should Always Choose the Lowest Rate
Truth: Rates matter, but so do closing costs, terms, and loan flexibility. The lowest rate isn’t always the best deal.
7. Self-Employed Borrowers Can’t Get Mortgages
Truth: While documentation is different, self-employed individuals qualify every day — especially with programs like bank statement loans.
8. You’re Stuck With Your First Mortgage Lender
Truth: Borrowers can (and should) shop around. At Trust Lending, we compare multiple programs to find your best fit.
9. It Takes Forever to Get Approved
Truth: With today’s technology and streamlined programs (like FHA Streamline or VA IRRRL), some approvals happen in days, not months.
10. Once You Buy, You’re Locked Into That Loan Forever
Truth: Refinancing, upgrading, or selling gives you plenty of flexibility to adjust your mortgage as your needs change.
Don’t let mortgage myths hold you back from buying, refinancing, or investing. The truth is, there are programs and strategies designed to fit almost every borrower’s situation.
At Trust Lending, we’re here to provide clarity, bust myths, and guide you toward smart mortgage decisions.
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