Mortgage interest rates are at tempting levels that could make you wonder if it’s the right time to reap the rewards of your investment as a homeowner. Cash-out refinancing could be an option if you want to take advantage of the historically low interest rates and augment your finances especially during this difficult time as the nation deals with a health crisis.
Refinancing is a hot topic right now as it offers a lot of different financial options for you as a homeowner. Before you begin, here are four things you should consider to get the best rate possible.
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.
Millions of mortgage borrowers have already applied for loan forbearance because of the uncertainty brought by the Coronavirus Disease of 2019 (COVID-19). However, some homeowners who have called their servicers were advised that they need to make a balloon payment once the deferment period ends. A balloon payment could be overwhelming if the pandemic has affected your finances.