For homeowners who are looking to lower either their home loan payments or overall costs on their mortgage, there are different options available here in September depending on what position a homeowner happens to be in and their ultimate goal for affordability. Understandably, many homeowners are still struggling to make financial ends meet and are looking for a lower, more affordable payment on their home loan as a way to simply get by but as we have seen continual drops in interest rates on home loans, there are some men and women who simply may be able to refinance for a more affordable rate, payment, and potentially lower overall costs.
Homeowners who are struggling as a result of problems like high amounts of debt, issues related to their job, or other factors like health related troubles may be in a position where a modification on their home loan is their best bet due to the fact that refinancing at the current time, while it is helpful for some, may simply be too expensive for those who are financially distressed. Obviously, homeowners have also been increasingly made aware of state-specific programs that could help them when it comes to addressing issues like unemployment, but in the area of the foreclosure prevention assistance plans some homeowners are unaware that these options are also helpful and available to homeowners who have not simply lost their job but may have seen financial distress as a result of their health.
Many men and women who may be without health insurance at the current time, but may have had a great deal of health care debt arise could potentially benefit from modifications, particularly in cases where foreclosure may be preventable if some form of assistance is offered. This type of aid, while it will vary from one lender to another or on a state to state basis, has helped numerous men and women through either federal or private modifications, not mention extension plans that may offer forbearance or principal reductions in some cases.
Yet, there is still opportunity for homeowners to take advantage of refinancing due to the fact that rates on mortgages are at a very low at the present time, and even here in September and the months leading up to these lower rates, we have seen some homeowners opt for shorter mortgage terms not only because they can get a lower rate but because they can save on the overall costs they might pay. In some instances, homeowners have seen a rate reduction so substantial when they refinance to a shorter mortgage term that their mortgage payment did not increase substantially, or at all, but a shorter mortgage term usually will equate to a higher payment each month, despite the fact that the overall savings can be quite large for some.
What officials are cautioning homeowners about at the present time is not to be drawn into refinancing if it will not benefit a homeowner’s situation, meaning that a homeowner will get an affordable, lower rate and they can afford fees associated with refinancing, but when it comes to modifications this is also a tricky area as well. Homeowners who are suffering from financial problems may want to either contact representatives from their mortgage servicer or consult outside resources like housing counselors who work with those exploring the Making Home Affordable Program, as these two forms of mortgage affordability options will help homeowners in vastly different situations, but there are no guarantees and homeowners must look into what options are available for their specific situation so that they will be able to better make a personal decision on how they can lower their home loan payments and costs.