Congress’ mortgage relief program and the FHA Supplement plan are not the only assistance options out there. If you do not qualify for mortgage assistance through these federal programs, you may be looking for other ways to seek help.
While not technically a mortgage assistance program, refinancing your home loan can significantly reduce your monthly mortgage payments. If you struggle to make your payments and do not qualify for forbearance, lowering your payments may make it easier.
When you refinance, you may decide to choose a different mortgage altogether. If you extend your loan term, you will have more time to pay off the remaining loan balance. This means that your balance is divided into more monthly payments, resulting in lower mortgage amounts.
You can also experience mortgage relief by refinancing to a lower interest rate. Part of your monthly mortgage payment goes toward the interest, which is money charged by the lender in exchange for providing the money to purchase a home. You could save hundreds of dollars in interest when you refinance to a lower rate.
Mortgage assistance for older homeowners may also be available for those who qualify. If you are age 62 or older, you may consider a reverse mortgage, which allows you to convert part of the equity of your home into cash.
Equity is the difference between the value of the home and the amount you still owe on it. It’s important to fully understand your financial situation before opting for a reverse mortgage. This option could utilize all the equity in your home, which means less assets for you when you want to sell it.
A more drastic approach to mortgage relief involves selling your home to get out of debt. A short sale occurs when you sell your home for less than what you owe on it. The money you receive from the sale goes to the lender, which typically excuses the remaining balance. If the lender does not forgive the remaining balance, you may be responsible for paying it.
A short sale is best for homeowners who know they can no longer make mortgage payments and want to avoid foreclosure. If you are in a temporary financial hardship, you may not be the best candidate for a short sale. If you do not have the means to find other living accommodations, this option may also not be best for you.
By Admin –
