Mortgage Myths

If you're thinking about buying a home, do yourself a favor and don't fall for these myths:

• It's a myth that bad credit will wipe out your hope for a decent mortgage. Even folks with checkered credit histories can buy homes. Here are some steps to make yourself attractive to lenders.
  
  
• It's a myth that 30-year fixed mortgages are best. They sometimes are, but not always. If you plan to move within a few years, an adjustable-rate mortgage (ARM) can give you a lower rate than a fixed one, while even locking in the rate for the first few years. (More on ARMS.)
  
  
• It's a myth that it's too late to refinance because mortgage rates are heading up. While many millions of people have indeed refinanced in recent years, many millions more still stand to profit by refinancing. And fortunately, it's not too late. Rates might be rising, but they're still not far from historical lows. Look into refinancing.
  
  
• It's a myth that it's important to pay off your mortgage quickly. This often isn't true -- especially if you have other debt. If you owe thousands on credit cards for which you're being charged double-digit inflation, for heaven's sake pay that off before you even think of accelerating your (lower-rate) mortgage payments.

Here are a bunch of other facts about mortgages and homebuying that you might not know.

Learn more about mortgages in these articles:

• Beware of Mortgage Servicing Scams
• Buy a Home, Not a Deduction
• Save Money on Your Mortgage

Learn more about buying, selling and maintaining a home in our Home Center, which also features special mortgage rates. Also, visit our Buying or Selling a Home and Building/Maintaining a Home discussion boards to get some great insights and tips from fellow Fools.

Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article.