The stress of a global pandemic can cause you to make some pretty rash decisions. 👩🦲
Before you go and do something crazy like skip a mortgage payment, let’s talk about why you should consider trimming your monthly payment to allow you to stay on track and remain financially sound.
This is a hard time financially for a lot of people, but skipping monthly payments is never a good idea. Instead, you may qualify for a refinance. Refinancing your mortgage is a great way to put you on better financial footing and can help you achieve long-term financial success after this is all over. Let’s look at how:
- LOWER YOUR RATE. If rates are significantly lower now than they were when you purchased your home, you can lock in today’s lower rate, which can save you thousands in interest over the life of your loan.
- DEBT PAYOFF. If you have built-up equity in your home, you may have the ability to cash out the equity and pay off high-interest debts and roll them into your lower rate mortgage. Bonus: Interest on a mortgage is tax-deductible. Interest on credit card debt is definitely not. Bonus bonus – Once you’ve consolidated all that high-interest debt into your mortgage, you will have essentially paid it all off, thus, giving your credit score a boost.
- REMOVE PMI. If you have an FHA loan and are paying mortgage insurance every month, you can refinance to a Conventional loan and get rid of that mortgage insurance.
- BONUS: TIMING. We may be able to time your refinance so that you can go up to two months before making your next mortgage payment.
Finances are tricky right now. The world is literally being turned upside down. But there are options available to you that don’t include a mortgage forbearance or straight up skipping payments. We want to help you find the option that will put you in a great financial position after the world gets back to normal… whatever that is 😊
Homespire Loan Officers are always available to go over these options with you. We all might be working remotely right now — attempting YouTube haircut tutorials — but we haven’t slowed down. If you have any questions, please don’t hesitate to reach out.
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