Homeowners who are still struggling under economic conditions that may be impacting their income, job, or their home have all found themselves in a situation where they are looking to lower their home loan debt, and certain opportunities that are still present here as we end September that remain in the housing market has led some to consider actions like refinancing but others are looking at ways that may offer them more affordable payments on their home loan. However, if homeowners are strictly looking to use refinancing as a tool for lower costs on their home loan or mortgage payments, this can impact what route they take when it comes to addressing these needs or simply looking to get more affordability.
Yet, there are still questions that remain from homeowners as to what assistance plans are available that may help them if options like refinancing are not available for this situation, as there are understandably homeowners who cannot refinance due to negative equity or the inability to pay costs that come with doing so. Also, lower interest rates on home loans may not always be an option that homeowners have, due to their financial situation, and this has been frustrating for homeowners who are seeing these rates remain around 4% on common 30-year fixed rate loans.
Essentially, homeowners looking for more affordability or the opportunity to lower their home loan debt need to assess their situation, which may require a session with a housing counselor for some, as lowering home loan debt or mortgage payment costs will not always be as simple as going through the refinancing process, despite the fact that this has been one way homeowners have achieved this goal of lower home loan costs. As an example, homeowners who refinance for a lower rate may get a more affordable monthly payment on their home loan but others refinance to a shorter mortgage term, typically with a lower rate, and can get lower overall home loan costs in certain cases.
Homeowners do need to understand though, refinancing is not going to be affordable or even available in some cases, but even in these instances homeowners are still in a situation where they need lower mortgage costs. While popular programs like the federal home loan modification plan has been helpful in these cases, homeowners may get mortgage payment assistance through certain state-specific programs that, once again, may still be unknown to homeowners suffering from financial distress as there are still individuals unaware of programs like the Hardest Hit Fund.
In the end, homeowners are being urged to look at their financial situation, what their mortgage payment goals and needs happen to be, and then select the best route so that mistakes like refinancing when it’s not to the homeowner’s advantage will not be a pursuit of a particular homeowner but rather they may turn to more helpful programs that will benefit them more in terms of finding a lower home loan payment.