“One call could save you $1,500” – Freddie Mac research
When house-hunting, it is highly recommended that you seek pre-approval for the loan. The process of getting a mortgage pre-approval a thorough check and verification by a lender to assess your credit standing and evaluate that you can pay off the amount you’re seeking to buy the home. Lenders, however, have recently become stricter with lending requirements due to the uncertainty and volatility that the pandemic has brought to the market and economy.
It’s important that you check your monthly mortgage statement for any changes to avoid unwanted surprises.
Loan forbearance is a viable option you may consider if you experience financial hardship and start missing your monthly mortgage payments. It allows you to reduce or suspend your payments for a period of time and determine a plan on how to repay them after.
Homeowners must notify their mortgage servicer or lender immediately if they experience financial hardship and find it difficult to repay their monthly mortgage. Working out with your servicer is important if you want to protect your home from foreclosure especially during this time that the federal government has declared a national emergency against the COVID-19 pandemic. Applying for any loss mitigation like a loan forbearance could be an option to keep your family safe.
When you take out a conventional mortgage to buy a home, your lender will require you to pay a premium for a private mortgage insurance (PMI) coverage if you opt to put a low down payment. Like the majority of homebuyers, a PMI gets you an approved mortgage that you would barely qualify to take. After several years of repaying your monthly mortgage, you’ll realize that your PMI becomes a burden and canceling it could help increase your savings.
For millions of borrowers who are struggling to pay their mortgage, help is on the way under the Coronavirus Aid, Relief, and Economic Act a.k.a. the CARES Act. When you contact your mortgage servicer or lender to get financial relief, it’s important that you know your rights as a homeowner.
Mortgage interest rates are at historic lows for the past several years and it’s all over the news. When you shop and get loan estimates from several mortgage lenders, you’ll come across two important figures that are both expressed in percentages: mortgage interest rate and annual percentage rate (APR). Understanding the difference between the two can help you make better decisions when choosing between buying a home or refinancing.
Like your health, checking your mortgage periodically is worth considering to determine if it’s still in good shape. There could be a lot of changes that have happened in your life since you took out a mortgage to fulfill your homeownership dreams. After several years of dutifully repaying your monthly mortgage, you may want to find out if you can reap the rewards of being a homeowner.
Staying at home may significantly reduce your chances of getting infected by the Coronavirus Disease of 2019 (COVID-19). As you stay in the comfort of your home, you might be at risk of falling victim to scams. This is especially true if you’re one of the millions of people who lost their jobs and fearing that you could miss your mortgage payments in the coming months.