Matters regarding mortgages can be very complex; often, when we get advice, it’s hard to separate the wheat from the chaff. You’ll be given all sorts of refinance advice, and those you talk with may have different intentions for doing so. If the refinance advice comes from a close friend or relative who swears by his mortgage plan, then you can study the advice seriously. However, if it comes from a lender, for instance, who wants you to make a decision immediately, then you need to think long and hard before you follow that advice. Many of them work on commission and may not have your best interests in mind.

Be careful who you take refinance advice from

The marketplace for mortgages is very confusing, many people will try to con you. Perhaps they do not intend to be dishonest to you, they just don’t understand the mortgage system themselves. This is why you must be very careful who you listen to about your mortgage advice.

Anybody can tell you anything about mortgages, but that doesn’t mean that it’s correct. If you’re having a drink with your mate and they try to tell you what you should do, then you should take it with a pinch of salt. This is of course unless your friend has any experience in this area! This is exactly how you should evaluate advice from other people.

You should do your homework well in advance and research all of the different mortgages on offer, this should be more than enough to help you avoid a lot of the bad advice that people will try to give you. We will talk about some of the common pieces of bad advice that have been told over the years.

These mortgage experts can be found anywhere! They are in books about mortgages, articles on the internet and in magazines, and financial advisors. Most of these would be unwilling to put their money where their mouth is, because they simply don’t know what they’re talking about. This list is the advice that you should not believe.

? Don’t pay for your mortgage in advance if you earn more interest than you would be spending on your mortgage
? Don’t purchase a home on mortgage unless you intend to live in it for over five years.
? You will always have to pay a high interest rate if you have poor credit history
? You should choose a 30 year fixed interest loan when refinancing.
? Interest rates can only go up, they will never come down because we’re currently at very low levels.
? Your lender will be honest and will help you out when suggesting loans
? If you go bankrupt it will ruin your credit rating
? You shouldn’t touch variable rate mortgages with a barge pole.

Again these are things that you shouldn’t believe, these are things that many people have been told over the years.

Many people are advised not to buy a home unless they plan to live in it for over five years, however this isn’t always the case. Many people have made a fortune playing with the housing market.

Equally you don’t always have to pay a really high interest rate if you are suffering from a poor credit rating. Numerous other factors will influence the interest rate that you will actually pay.

Most people say that you can trust your lender, however many of them are on commission. They certainly won’t look after your interests when they stand to earn more money.