When you’re buying a condo or loft in DTLA, it’s safe to say you’ll need a mortgage loan to do it. Most people do.
But don’t fall for these three big mortgage myths that suck most people in.
3 Big Mortgage Myths, Busted
- Interest rates are the same as APR
- You’ll make out big on your taxes
- If you’re approved, you can afford it
Mortgage Myth #1: Interest rates are the same as APR
Your interest rate and APR are two different things. Your interest rate is the amount of money you’ll pay to do business with the bank just on your loan. Your annual percentage rate, or APR, is a reflection of the total cost of doing business with the bank – it reflects your closing costs, broker fees, discount points and more.
Mortgage Myth #2: You’ll make out big on your taxes
Owning a home doesn’t always give you tax benefits. It can, but not always. You can be eligible to write off expenses that are connected to your mortgage, but you’ll need to talk to a tax professional before you do anything new.
Mortgage Myth #3: If you’re approved, you can afford it
Just because your lender approved you for a certain loan amount, that doesn’t mean you won’t be stretching each month when the mortgage payment is due. The lender isn’t worried about your retirement savings, your daycare costs or school tuition – it’s worried about whether you’ll make your house payment. And usually, when money’s tight, it’s not the house payment that suffers… it’s everything else.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale