Smart financial moves can help you offset unexpected drops in your income that could result in the loss of your home. When your income drops, selling your home is one option to consider, this may not be a viable alternative, however, if the real estate market is soft.
Contact a mortgage broker to help you negotiate with your lender. If the lender still owns the mortgage, they may be able to help you keep your home. Discuss the possibility of a temporary negative amortization. This type of loan restructuring adjusts your payment below the interest due. You agree to pay an amount that you can afford for a fixed period. This payment arrangement allows the balance of the loan to increase (rather decrease) because the difference between your reduced payment and the interest due is to the principal.
Refinancing at a lower rate of interest offers many people a way to lower their monthly payment. You may have to pay the initial costs of closing the new loan, but the financial break you get each month may be worth it.
For professional advice on all aspects of mortgage financing, contact Paul Banas at 716-633-5888. Registered broker NY State Banking Dept. 3rd Party loans. Independent Mortgage Broker.