![](https://royalounge.com/wp-content/uploads/2020/04/04-01-Mort-1-1000x600.jpg)
Mortgage Options you Should Consider in Times of Crisis to Keep a Roof Over Your Head
![](https://royalounge.com/wp-content/uploads/2020/04/04-01-Mort-1-1000x600.jpg)
Not everyone is lucky to have a job that enables them to work from home amidst the widespread lockdowns caused by the ongoing coronavirus outbreak. Thus, a lot of people have recently found themselves scrambling for ways to afford their bills after losing their source of income.
Part of this is the worry over losing one’s home due to their sudden inability to make their monthly mortgage payments. The good news is that struggling borrowers have a choice of options to keep a roof above their heads.
Mortgage Relief
![](http://afternoonedition.com/wp-content/uploads/2020/04/lennart-schulz-eLcKZum9FjY-unsplash.jpg)
Unsplash | Rest assured that evictions and foreclosures are suspended in the meantime
Since the entire American population is affected by the coronavirus pandemic, lenders might be more understanding of people’s financial predicaments.
For example, Fannie Mae and Freddie Mac are making exceptions for homeowners impacted by the crisis. Those who borrowed from these federal mortgage loan companies should consider applying for forbearance lasting for up to a year without penalties.
Those whose mortgage was funded through private lenders can also expect some form of relief during the health crisis. A reported 200 banks and credit unions in California have decided to waive mortgage payments temporarily.
This would last for three months and wouldn’t cause damage to people’s credit scores. This said homeowners are advised to immediately get in touch with their banks and inquire about how they can decrease their monthly payment.
Consider Refinancing
![](http://afternoonedition.com/wp-content/uploads/2020/04/austin-distel-jpHw8ndwJ_Q-unsplash.jpg)
Unsplash | Homeowners can also speak with a local mortgage broker to help them explore their options when refinancing
Those who happen to have lenders that remain unwilling to offer exceptions during the coronavirus outbreak can opt for refinancing their mortgage. Going this route can also help lower the interest rate one ends up with.
It’s worth noting though that this would only be the case for those who have good credit scores and a strong financial history. Experts also advise homeowners to seek out smaller credit unions as most lenders have been dealing with a lot of refinancing applications in the past weeks. Doing business with these local lenders is a way for people to help small businesses to stay afloat.
Cashing Out
![](http://afternoonedition.com/wp-content/uploads/2020/04/green-chameleon-s9CC2SKySJM-unsplash-1.jpg)
Unsplash | Liquidating equity is a good option for people whose homes have increased in value
Borrowers can also choose to cash in on their home equity to use it for mortgage payments. This can be done through cash-out refinancing. The process involves getting a new loan but with the borrowed amount being for more than what was originally owed.
Going this route solves two problems, according to experts, as it gives homeowners a lower interest loan while also having access to the equity their home has.
More in Business
-
`
The Mesmerizing Transformation of Halsey: A Musical Icon Turned Makeup Maven
In the dynamic world of beauty and self-expression, Grammy nominee and former 30 Under 30 awardee, Halsey, has taken a remarkable...
April 18, 2024 -
`
The 10 Most Promising Investments in 2024
In the unpredictable world of investments, lat year surprised us with the stock market thriving against all odds. Despite looming recession...
April 18, 2024 -
`
Study Shows Employees Value Work-Life Balance Over Pay
Gone are the days of chasing the almighty dollar without a second thought. Randstad, the world’s leading employment agency, conducted a...
April 17, 2024 -
`
How to Get a Startup Business Loan with No Money: Your Step-by-Step Guide
Securing funding for your entrepreneurial dreams can feel like climbing Mount Everest without oxygen. It’s challenging, but there are paths to...
April 16, 2024 -
`
How Much is Ryan Reynolds Net Worth?
Ryan Reynolds, the quick-witted Canadian actor with a million-dollar smile, has carved a unique path to Hollywood stardom. But his journey...
April 11, 2024 -
`
Why Italy Is the Perfect Solo Adventure Spot
Embark on a soul-stirring solo adventure through the captivating landscapes and rich tapestry of Italy, where every cobblestone street whispers tales...
April 10, 2024 -
`
What is Provisional Credit and How Does It Work?
Have you ever checked your bank statement and noticed the term “provisional credit.” This term frequently appears during disputes or chargebacks....
April 9, 2024 -
`
Elon Musk’s OpenAI Lawsuit | Are OpenAI’s Financial Motives Overshadowing Its Mission Statement?
A recent legal battle has rocked the world of artificial intelligence (AI). It pitted Elon Musk against OpenAI, the research company...
April 8, 2024 -
`
Cultivating Prosperity: Lunar New Year Traditions for Financial Abundance
As we usher in the Lunar New Year, the traditions that accompany this vibrant celebration are not just a cultural spectacle...
February 10, 2024
You must be logged in to post a comment Login