Mortgage is undoubtedly the main monthly expense for a lot of home owners. However, the lack of jobs across America are affecting everyone’s finances, making it difficult to manage their cash flows. It is also making people think about how they would tackle the various mortgage challenges during the COVID-19 pandemic.
There’s no denying that things have been a bit grim and may continue to be that way for a while, but there are certain things homeowners can do to tackle their mortgage related issues. Mentioned below, are 3 things you can do to minimize or steer clear from the pandemic’s mortgage challenges.
One of the fastest and easiest ways to reduce mortgage costs is to refinance as mortgage rates are at a record low. For more info contact a qualified loan officer.
1. Cut Down on Needless Expenditures
First off, start eliminating unnecessary expenses. You can start by cutting down on eating out, coffee and discontinuing unnecessary subscriptions. It would also help if you redirected your college or retirement funds saving to take care of your monthly bills. In addition, you should also get in touch with a credit card company that offers an interest-free grace period to free up your cash for important expenses.
2. Consider Your Mortgage’s Financial Impact in the Long Run
Since mortgage interest rates are on the lower side these days, home equity loans or refinancing may seem like excellent solutions. However, they may not be ideal for a lot of people. Refinancing comes with a caveat: its process is incredibly long, especially for those who are looking for a short term solution.
You should also stay away from extra debt from excessive credit card expenditure or home equity loans. Its stress could take an emotional and financial toll, making your mortgage issue even more challenging.
3. Look for Mortgage Relief Options like the CARES Act
There are plenty of mortgage relief options like the Coronavirus Aid, Recovery and Economic Stimulus Act, also known as Cares that offer homeowners facing financial difficulties, six months for a mortgage forbearance request. For those who don’t know, forbearance can be an effective tool for putting interest and several other payments on hold, allowing homeowners to manage their cash flow issues effectively. With the plethora of job losses caused by the pandemic, several mortgage lenders have developed easy-to-access online applications and forms to assist people in need. So, if you are a homeowner facing a mortgage challenge, waste no time in getting in touch with a reliable lender to get relief.
Need help? Contact a loan officer today!