Home ownership is always an exciting, and confusing, proposition. Some recent items in the news have only continued to muddy the waters in terms of understanding home ownership.

1. Is a 40-Year Mortgage A Thing? Recent news outlets have spoken, incorrectly, about the availability of 40-year mortgages. While it is true that some lenders may, in fact, offer a 40-year mortgage to certain homeowners, it is far from the norm. Most often, these extended mortgages are provided to current homeowners who have FHA mortgages and need help because they have defaulted on a loan or are in financial distress in some other way. This may allow them to avoid foreclosure by extending an existing, shorter-term loan over a longer period to result in smaller monthly payments.

2. Having A Higher Credit Score Means Higher Mortgage Fees! Say what? We always have heard that having a good credit score will result in better rates and lower fees when securing a loan. Now are we being told something else? Not really. A change in loan-level price adjustments went into effect May 1. People with credit scores between 680 to 780 or higher and with the ability to put down 15-20% were going to be hit with higher fees, media outlets reported. While it is true that some fees in the home buying process went up under the new rule, it is not true that borrowers with higher credit scores are being charged more so that those with lower credit scores could be charged less. As has always been the case, the updated fees will generally increase as credit scores decrease.

3. Home Prices Are About to Crash. We have been hearing that for a while now (and by that, we mean for years). And while some buyers may be hoping that we will see a deep dive in home prices, the reality is that while home prices may not be increasing at the same clip that they were in recent years, we still have a housing deficit. What does that mean? We still do not have enough houses for everybody who wants to buy. And with simple supply and demand, the result is that home prices will likely still increase in most of our markets.