Actually, a werewolf might be a sasquatch colored with uneducated theories to explain the phenomenon.
A mermaid might be a sea creature colored by the stories of even less educated, rough, tough, sex-starved, 18th Century sailors.
Vampires? It's a matter of history that Vlad Dracula was much more bloodthirsty, murderous, and efficient than any story the completely uneducated people of the region and era could ever describe or Hollywood can even depict. Imagine a forest of 20,000 impaled humans rotting in the sun and feeding the birds. It was so utterly horrifying, it accomplished the desired effect; the Ottomans turned around and went home. A monstrous legend, created by reality, survived and evolved for centuries.
Paranormal? Nope. Evolving stories/theories to describe an incredible reality? You bet......