PROUDLY CANADIAN
Financial troubles can occur at any time in life and one of the main areas that can be affected is mortgage payments. Losing a job or facing unexpected bills can leave you short on money in other areas. When you find that your mortgage payments become too hard to bare, there are steps you can take to remedy the situation. From refinancing your mortgage to getting a break in payments, try a few of the options below to save your home and avoid falling deeper in debt.
Refinancing
One of the most common ways to help pay your mortgage is to refinance your loan. Take a look at your current loan terms. What is your interest rate? Rates have dropped considerably so you may find that the rate you are paying now is much higher than what is being offered. If you can lower your interest rate and refinance based on what you owe, your monthly payment may drop considerably. This will make your payment more affordable, helping you to pay your mortgage each month.
Amortization
You may also want to consider changing your amortization term. Payments will go down if you change the loan term from 20 to 25 years. This will mean you will be paying on your home for longer, but it will make the monthly payment more affordable. Check with us to see your options and find out how much you can save on your monthly payment by changing the amortization term.
Skip a Payment
One option that might be open to you is to skip a payment. This option allows you to avoid foreclosure on your home by reducing the mortgage payments or limiting the payments made for a certain period of time. Once the time period is up, you will need to catch up on payments as well as make your regularly scheduled payment. You may also be able to work out a repayment plan with your lender if you have only missed a few mortgage payments. It never hurts to ask your lender to see what options are available to you. This varies from lender to lender and may or may not be available to you.
Sell Your Home
If times are truly tough, you may have to consider selling your home. Selling your home will allow you to pay off your mortgage and begin anew. This can take time though so you may find that you owe money after the sale is completed if you fall too far behind on monthly payments.
Renting Your Home
Depending on how large your home is, you may be able to find a renter to provide additional funds. If you have a spare room, you can offer it up for rent to provide extra income to use for your monthly mortgage. Or choose to rent out the entire home and move in with family or friends until you can get back on your feet.
At Mortgage Guys, we want to provide you with the financial options needed to secure your home mortgage. When you fall behind on payments, contact our office to learn what options are available to help you save your home.