Articles
- Help in Writing a Mortgage Modification Hardship Letter
- Expediting loan modifications and short sales
- Loan Modification Guidelines
- The Differences Between Home Loan Modification and FHA Loan Refinance
Tips for lowering your mortgage payments
Many people are struggling to pay their home mortgage as a result of the bad economy. There may be options available to you that can help make it easier to keep up with those monthly payments.
Look Into Refinancing
With many interest rates at record lows in recent months, it may be possible to lower your monthly payments by refinancing your existing mortgage. For example, a $200,000 30-year loan with a 5.75 percent rate would cost you $1,167 a month, while the same loan with a 5 percent rate would be $1,074, a savings of nearly $100 per month. If you have held your current loan for several years, you may find that rates have dropped in the meantime, offering the chance to decrease your monthly expenses.
But Watch Out For Fees
Be sure to check the fine print on any refinancing to see what kinds of closing costs the lender is charging. These might include not only points, but also administrative or underwriting fees and charges for the appraisal of the home. In some cases, you may not have to pay these fees up front because the lender will simply add them to the amount being refinanced. That sounds like a good deal, but when the total loan amount goes up your monthly payments do, too. Find out exactly what these fees will cost on a monthly basis, and then decide if the refinancing is still worth it.
Ask The Lender For Help
It's always a good idea to call your creditors whenever you are having or expect to have problems keeping up with your payments. That's true of mortgage lenders, too, and it's especially true in a recession, when many borrowers are walking away from their debts and banks are anxious to help borrowers avoid foreclosure. Contact your mortgage lender, explain your situation and ask if they can offer you any accommodation to make it easier for you to continue making payments. It's a good idea to decide in advance what kind of modification you would like so that you'll be prepared to make your case.