30 year fixed-rate mortgages are staying around 5% and for many homeowners this is a much lower interest rate than they currently have on their home. Mortgage rates have been at record lows over the past few months and it is for this reason that many people have refinanced their home in order to get a lower interest rate, as well as, a lower monthly mortgage payment.
Financial struggles seem to have been widespread over the past few months and many homeowners have been struggling to meet their mortgage payments due to unemployment or a cut in their wages. It is for this reason that many people have sought lower monthly mortgage payments by refinancing their home loan.
However, there are options outside of refinancing that can help make a home more affordable and should be explored by homeowners who may be struggling financially. There are costs associated with refinancing for a 30 year fixed-rate mortgage, or any other type of mortgage for that matter, and just because a lower mortgage payment may be available doesn’t mean a homeowner should take that route.
Homeowners are being advised to contact their lender, if they are struggling to make their mortgage payment, and ask what options might be available to assist them in getting back on their feet financially. Refinancing to a lower interest and mortgage payment is one option, but again, there are things like mortgage modifications available that may be in some homeowners’ best interest.
Before proceeding with any type of mortgage modification, homeowners, again, need to find out what the best option would be and what they can financially afford, and this oftentimes begins with talking to their lender.