Avoid Falling Victim to These Mortgage Myths While Buying Home
Beware, while going for mortgage you might not get that interest write-off after all. There are many people who want to own a home because they consider it as an investment. They think renting as throwing money away. However, owning a home is no longer a sure bet in this post-great-recession world! There also are many mortgage myths which can cause you to lose money in pursuit of owning a home. Some of the biggest mortgage myths are here for you to know. 
APR & Interest Rates are the Same Thing – Interest rates are one of the most important factors to compare when you are going for a mortgage. Everyone wants to get the lowest rate possible. Even a difference of 1 percent is meaningful. It could save or cost you tens of thousands of rupees over a 25-year mortgage. Annual Percentage Rate or APR however is more important. Although interest rate on mortgage determines what you would
pay every month on the loan amount, it is the ATR which gives you clues on the type of fees included in your term loan. Check on the ATR to compare overall fees which is charged by different lenders while availing loans.
Always Better to Own a Home than Rent – Quite often people buy a home because they consider it as an investment. They think renting is throwing away money. There is no doubt that owning a home has plenty of advantages including an opportunity to grow equity & claim tax deductions. On the flip side, home ownership can also present unique financial challenges which renters do not have to deal with. Moreover, home ownership comes with property taxes, maintenance costs & the lack of flexibility to move into another city for a better job.
Buying Home is Worth for Tax Deductions – It is true that homeowners are eligible to write off expenses which are related mortgage for the tax at that time. This includes mortgage interest & property taxes. But this should not be the reason to buy a home even if it is a great perk. Tax deductions only reduce the amount of income which is to be taxed but don’t cut your tax bill rupee-for-rupee. Actual savings will in fact pale in comparison to the amount of money you spend on the house.
You are Done After Pre-Approval – While pre-approval simplifies the home buying procedure, it does not mean you are in the clear. It is also extremely important that you subsequently do not make any changes which affect your employment, credit or income till the time you take possession of your new home.
20 Percent Down Payment is Required – Although this is longstanding rule of home ownership, quite a few financial experts are challenging the 20 percent down payment rule. However, earnings do not keep pace with skyrocketing values of homes in big cities & therefore can create a problem. In quite a few instances, taking a little more debt or temporarily paying private mortgage insurance can be a good way of realistically affording your new home.
Paying Off Mortgage is a Good Idea Being debt-free is an admirable goal, though it might not be prudent if you are having a mortgage. Nevertheless, mortgage allows you to leverage your money
with low interest rates. But for leveraging the money you will have to earn additional money each year rather than sinking all your cash into property. Moreover, this will allow you to grow your wealth faster alongside keeping a good portion of it in liquid in case you need it. Top-of-the-Line Construction Companies in Hyderabad Count on Northstar Homes if you are looking for purchasing real estate in Hyderabad. At present they are having ongoing couple of villa projects in the most coveted areas of the city. Northstar Homes Hillside is located at Gandipet & features 37 hand-crafted villas that are nestled close to the lush green Central Park. Northstar Homes Airport Boulevard is in close proximity to the RGI Airport adjacent to the Hardware Park. Airport Boulevard is a wise investment option with best return on investments. Check these out, Northstar Homes is one of the finest real estate developers in Hyderabad.