Watch Allan and Rob to learn more.
From the October KTHV interview with Allan Huddleston and Rob Evans
No Headphones...No Problem. See below for transcript.
[Music]
by 48 right now and Alan how to think
from my bank of Little Rock mortgage to
insist to debunk some common mortgage
myths and we appreciate it because it's
more of the most confusing you know
things of your entire life successful
confusing things of your life if you're
doing it alone first time especially
yeah let's start with the biggest myth
of all I got I can't buy a house I'm an
apartment I have to buy I have to work
on my credit I got to get that 8 under
credit score is that is that true it's
not right as it certainly helps to have
a little bit higher credit score from an
interest rate standpoint when these
loans are priced it's all based on
credit scores so if you've got a 727 40
or higher you're going to get a much
lower interest rate than you would if
you had a 640 666 20 but as far as the
overall approval goes if you have a 620
at least the debt to income ratio is in
a pretty good range most of the time
we're gonna have an approval even with a
lower score 620 so you 200 points
different what you think you need maybe
you say well I can't afford a house
because I don't have 20% down right
let's talk about even $100,000 house
just $20,000 cash like people don't have
that but you don't need that either you
don't you know it it surprises me a
little bit I still have people that call
in and think they do need a 20% down
payment I mean years ago and it's been a
while that was a requirement and it was
kind of a barrier to homeownership
because most people just didn't have
that 20% down but there are a lot of
programs now even have zero down VA
loans rural development loans and then
even the traditional more conventional
financing 3 to 5 percent there's really
kind of the average so so no you do not
need that large 20% down payment if you
have it yeah great you may get you out
of PMI mortgage insurance but it's not
required talk about the rural
development loan just really quick yeah
you think it that sounds you know so far
away that might be across the street
from your neighbor's house it's amazing
how they divide these lines it could no
absolutely
I've had some friends that they got that
loan another one is is it always a good
idea to pay off my mortgage where should
I pay other bills first it is it can be
a good idea but certainly not
always I mean it really depends on the
individual in their financial situation
if you've got just a ton of cash burning
a hole in your pocket and you know and
you which I don't I don't think most of
us do and you have no other debt to
address then it might make sense to pay
off your mortgage but but if you've got
other debt high interest debt credit
card that you're probably going to be
you know in much better position to pay
that off first and the other thing is
that most of the time the mortgage debt
the interest on the more you said is
tax-deductible right whereas the credit
card debt is not so you really just want
to look at that make sure before you
drop that cash to pay off a loan you're
paying off the most beneficial you know
loan in that scenario less real quickly
by the way three point what is it 4:30
orchid Mitchell 30-year is averaging
three point five to three point six to
five with with higher credit yeah you
know new refinance even if you bought it
perhaps last year absolutely
