Many homeowners worry about being unable to afford their home payment in the future as the economy is still seen as unstable by many and mortgage troubles continue to abound across the nation. Homeowners have sought out ways in which they can make their home loan payment more affordable through the making home affordable program, but there are homeowners who are in a decent financial position and cannot benefit from this type of assistance.
Concern over the modification program by many homeowners has caused some to turn to alternative ways which will allow them to erase their mortgage debt quickly so that they can own their home outright. While erasing mortgage debt is not something that every homeowner is able to do, some homeowners have become worried that if they fall into financial difficulties a modification or mortgage assistance plan may cause damage to their credit score or may be unavailable.
Homeowners who qualify for the Obama modification program often have missed payments on their home loan, which can have adverse effects on one’s credit score. Many homeowners who are in decent financial standing have chosen to pursue options that allow them to get out of mortgage debt as quickly as they can rather than lowering their home loan payment to a more affordable level, in the hopes that financial difficulties will not overtake them.
There are homeowners who have been paying more on their home loan payment each month than is required in the hopes of erasing their mortgage debt in a much timelier manner. Also, homeowners have been refinancing to a 15-year fixed rate mortgage in order to obtain a lower mortgage rate, for those who qualify, and erase their mortgage debt in a much shorter timeframe than, for instance, with the popular 30-year fixed rate mortgage.
Homeowners are budgeting to afford the higher mortgage payments that come with either the 15-year fixed mortgage or simply paying more than is required on their monthly mortgage payment because it, again, will allow them to erase their mortgage debt faster and will save them money overall. Homeowners who seek out assistance options that either extend the life of their home loan or lower their mortgage payment, which would also extend the amount of repayment time required, are paying more on their home loan, which is obviously not beneficial financially for someone who may be able to avoid one of these repayment plans.
While there are homeowners who are in a particularly poor mortgage situation and are just happy to keep a roof over their head with the assistance of a home loan modification, homeowners who have not felt cutbacks in their wages or have lost their job have been able to use refinancing to a 15-year mortgage or simply paying more each month on their home loan as a way to fiercely combat their mortgage debt. Yet, despite the fact that some homeowners are able to get out of mortgage debt faster, homeowners who are considering various methods for erasing mortgage debt are often advised to look at their personal financial situation or talk over options with their mortgage lender to make sure that erasing their mortgage debt will be a financial possibility and in their best interests at the present time.