Mortgage Options you Should Consider in Times of Crisis to Keep a Roof Over Your Head
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.
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.
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.
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 Career
We Need More Women in Data Science Say Experts – Tips to Guarantee Success
If you’re using the internet on a daily basis, there’s nothing you do that doesn’t require data. Your computer. Your smartphone....September 23, 2021
Top 4 Places Expats Can Consider Moving To
Leaving your home country and moving to a new place can be daunting. You might have to repeatedly dodge questions like,...September 13, 2021
Is Your Debt Ruining Your Life? Here Is What You Can Do
Debt can become overwhelming to the point that it can begin crushing your life. You could begin to develop the impression...May 10, 2021
Is Matthew McConaughey Going to Run for Office? There May Be Signs That Point to Yes
Many celebrities have gone out of the confines of their job descriptions and have explored the messy world of politics. From...April 25, 2021
How Lady Gaga Bounced Back from Being Practically Bankrupt At The Height Of Her Career
Lady Gaga is one of her generation’s most commercially and critically acclaimed musicians. So, her confession of financial troubles comes as...April 21, 2021
Ryan Reynolds Has a Special Gift for Bartenders Affected by the Coronavirus Onslaught
The current coronavirus pandemic has led to the temporary closure of numerous restaurants and bars across the United States. This means...April 10, 2021
Are You Chronically Tired? This Could be the Culprit Behind the Problem, And It’s Not Sleep
Have you ever felt tired when you wake up in the morning or found your energy level at an all-time low even though you’re...April 6, 2021
Your Company’s Success Could Go Through The Roof With These Proven Workplace Productivity Hacks
Productivity is one of the most discussed concepts when it comes to work and business. Workers and business owners are both...March 22, 2021
Why It’s Important to Know EXACTLY What Your Job Title Entails
Job titles and descriptions serve as a way for applicants and eventual hires to have a clear idea of what kind...March 15, 2021