Mortgage Relief; Do you know your options?
If you're wondering what your options are during these unprecedented times, you're not alone. We're breaking down FIVE different mortgage relief options so you can make the best choice for you and your family...
This is the plan many people are talking about since the passage of the CARES Act. This is an agreement with your lender to reduce or delay regular payments for a set amount of time. When the forbearance period ends, the postponed payments will be due all at once.
This is a legal process that alters the terms of your loan. For instance, a modification could lower your monthly payments by lengthening your loan term.
This allows you to postpone your payments for a set amount of time and then pay them at the end of your regular loan term. A deferment is more beneficial than forbearance for many people because it eliminates the need to make up multiple payments at the end of a short postponement period. Note that Deferments are not available from everyone.
Payment Assistance Program
This is an arrangement that allows you to make up your postponed payments at the end of a forbearance period by spreading the cost over a period of time. Payment Assistance Programs are not available from everyone.
Cash Out Refinance or Home Equity Line of Credit (HELOC)
If you have enough income to qualify, accessing equity in your home by refinancing or obtaining a secured credit line may be a good option for lowering your payments in order to create a cash cushion. A refinance will be especially beneficial if current rates are lower than those on your existing financing.