
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.
Mortgage Relief

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

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

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
-
`
Here Are Some Best Sellers in Self-Help Books
Books can serve a variety of functions—from entertainment to education , but self-help books are intended to assist us in improving...
October 4, 2022 -
`
Here’s Why Having A Chief Of Staff Is Necessary For Your Family Business
Family Businesses are a great way to generate generational wealth. They provide the community with experts in the field, but family...
September 20, 2022 -
`
Do You Know Which Celebrities Had Famous Parents?
Long gone are the days when the children would inherit their parent’s profession; now, a farmer’s child may not become a...
September 15, 2022 -
`
Wealthy Russians Are Quietly Unloading Real Estate Across The U.S.
For the longest time, wealthy Russians have made real estate investments in the United States. These oligarchs purchased a large number...
September 7, 2022 -
`
Are You An MBA Graduate? Here Are Some Worthwhile Career Opportunities For You!
Having an MBA degree is a big plus nowadays. You can find tremendous career opportunities for MBA graduates, from human resources...
August 24, 2022 -
`
Here’s What Every Entrepreneur Ought To Know About Seed Money
Starting a new business is just as exciting as it sounds. In fact, it is the first step towards becoming financially...
August 16, 2022 -
`
Marilyn Monroe’s Secret Love That Ended In Miscarriage And Heartbreak
Marilyn Monroe is a name many people remember and will continue to remember as long as the American entertainment industry lives!...
August 14, 2022 -
`
How Much Money Does It Take To Be Considered Wealthy In The U.S.?
The United States is a large and diverse country with big regional variances and even noticeable differences from one city to...
July 31, 2022 -
`
All You Need To Know About The Cost Of Living
When you pay your monthly bills, you probably notice that certain expenses rarely change by much. This list includes things like...
July 23, 2022
You must be logged in to post a comment Login