Meet Cari LaMere
Cari LaMere is an accomplished mortgage banking professional with more than 25 years of experience leading sales, operations, and strategic initiatives across retail and multi-channel mortgage environments. She is known for analyzing and improving business practices, streamlining technology and operational processes, and driving growth while maintaining loan quality and strong regulatory compliance.
Currently, Cari is Regional Market Manager at New American Funding, where she leads a growing team, recruits top sales and operations talent, and has created The LaMere Team to support the Colorado real estate market. She has been recognized across the industry, including MGIC’s Excellence in Leadership Award, HousingWire’s Top 20 Women of Influence, and being named one of NMP Magazine’s “40 Most Influential Mortgage Professionals to Watch Under 40.”
10 Common Mortgage Myths Debunked
Buying a home is a big step, both emotionally and financially. Naturally, you want the most accurate information to guide you through this process. However, a surprising amount of misinformation is out there, sometimes unintentionally passed along. Let’s clear up some common misconceptions to help you navigate the complexities of buying a home.
Myth #1: You Need a 20% Down Payment
One of the most persistent myths surrounding mortgages is the belief that a 20% down payment is an absolute necessity. While a larger down payment can help you avoid private mortgage insurance (PMI), it’s not mandatory. Many conventional loans offer down payment options as low as 3%. Government-backed loans, such as those offered by the Federal Housing Administration (FHA) and the Veterans Administration (VA), may require even less. Be sure to explore your options. A smaller down payment might mean a higher monthly payment, but it can also accelerate your path to homeownership.
Myth #2: Renting Is Always Cheaper Than Owning
The age-old debate of renting versus owning often hinges on the misconception that renting is inherently cheaper. The true cost of homeownership extends beyond the mortgage payment. While renting may offer short-term affordability and flexibility, homeownership presents long-term benefits, such as equity building and potential tax advantages.
Additionally, rental costs can fluctuate, while owning offers more stability over time. The decision hinges on several factors:
LOCATION INFLATION PROPERTY VALUES LIFESTYLE
Property values and rental rates can vary significantly depending on your desired area.
Long-term mortgage payments could potentially be lower than long-term rental costs due to inflation in rental markets.
In appreciating markets, building equity can outweigh renting costs. If you want stability and the ability to personalize your space, ownership might be more appealing.
Myth #3: Spring Is the Ideal Time to Buy
The notion that spring is the best time to buy a home is a common misconception perpetuated by seasonal trends in the real estate market. While there is often an influx of new listings in spring, it’s not the only ideal time. Market conditions can differ greatly by location. In some areas, winter might offer a buyer’s market with more motivated sellers and potentially lower prices.
The best time to buy boils down to finding the right house at the right price, regardless of the season.
Myth #4: You Need a Perfect Credit Score to Get a Mortgage
While having a stellar credit score can undoubtedly improve your chances of securing a favorable mortgage rate, it’s not the sole determining factor. Many lenders offer options for borrowers with less-than-perfect credit. Factors such as income, employment history, and debt-to-income ratio also play crucial roles in the mortgage approval process. By working with a knowledgeable lender, you can explore your options and find a mortgage solution that suits your financial circumstances.
Myth #5: 30-Year Fixed Mortgage Is the Only Option
While a 30-year fixed-rate mortgage is the most popular choice among homebuyers, shorter-term options like 10-year and 15-year fixed-rate mortgages offer lower interest rates, faster equity building, and significant interest savings—though with higher monthly payments. Adjustable-rate mortgages (ARMs) provide another alternative, starting with lower rates than fixed mortgages, making them appealing for buyers planning to sell or refinance within a few years; however, rates can adjust periodically, potentially leading to higher payments down the road. Consult a knowledgeable mortgage advisor to explore your options and determine the best fit for your unique circumstances.
Myth #6: Always Choose the Mortgage with the Lowest Interest Rate
While obtaining a low interest rate can be beneficial, it’s not the only factor to consider. Closing costs, origination fees, and loan terms—like the fixedrate period for adjustable-rate mortgages—all play a role in the overall cost of your mortgage. A mortgage with a slightly higher interest rate may offer lower closing costs or more favorable terms, ultimately saving you money in the long run. Additionally, be wary of teaser rates that may increase significantly after an initial period. Always read the fine print and understand all terms and conditions before making a decision.
Myth #7: Banks Set Mortgage Interest Rates
The Drivers of Mortgage Interest Rates
• Fed Funds: The Fed sets the overnight funds rate for bank-to-bank lending. While this influences short-term debt (credit cards/HELOCs), 30-year mortgages move based on market expectations and the mortgage-backed securities bond market.
• The 10-Year Treasury “Spread”: Mortgages are “cousins,” not twins, to the 10year Treasury. The spread (the gap between them) fluctuates based on investor risk. In early 2026, this gap remains wider than historical norms due to market volatility and “prepayment risk”.
• Lenders as “Price-Takers”: Banks don’t arbitrarily set rates; they respond to the Mortgage-Backed Securities (MBS) market. If global investors demand higher returns to offset inflation, mortgage rates must rise to attract their capital.
Myth #8: You Should Find a Home Before Applying for a Loan
Knowing your budget before looking at homes helps prevent emotional decisions and ensures you don’t fall in love with a property beyond your financial reach or miss out on better opportunities. Getting pre-approved for a mortgage before house hunting provides a realistic budget, streamlines the buying process, demonstrates to sellers that you’re a serious buyer, and equips you to make informed decisions and negotiate confidently when you find the right property.
Myth #9: Once Your Offer Is Accepted, the Deal Is Done
Getting your offer accepted is a cause for celebration, but several crucial steps remain before you’re officially a homeowner, including scheduling a home inspection, ensuring the property appraises at the offer price, finalizing loan approval, and attending the closing to sign paperwork. Be diligent and proactive throughout the escrow period, address any issues promptly, and work closely with your real estate agent and lender to ensure a smooth closing process—remember, the deal isn’t officially done until all documents are signed, funds are transferred, and keys are exchanged.
The “Savings” Myth #10: You Will Save Thousands If You Sell Your Home On Your Own
Hiring a real estate professional is a strategic investment that typically yields higher profits. According to NAR 2025 data, agent-assisted homes sold for a median of $425,000 versus $360,000 for FSBO properties—a $65,000 gap that often exceeds commission costs.
KEY BENEFITS:
• Higher Sale Price: Expert pricing and MLS exposure attract more buyers
• Negotiation Power: Agents protect your equity from lowball offers
• Legal Protection: Professionals handle complex disclosures and contracts
• Time Savings: Agents manage vetting, staging, and inspections
In 1971, the interest rate for a mortgage was 7.33%. If you waited for interest rates to go down, you wouldn’t have purchased a home until 1993. You would have rented for 22 years waiting for rates to go down, meanwhile the value of real estate quadrupled. Don’t wait to buy real estate. Buy real estate and wait. Marry the house, date the rate.
Any Questions?
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