How to Stay in Your Home When You Can’t Afford Mortgage PaymentsJuly 6th, 2022
Financial setbacks can cause a great deal of stress and worry. One of the biggest concerns many people have is the possibility of losing their homes. Your home is your haven, and losing it can feel like losing a precious piece of yourself, your family, and your history. Thankfully, there are ways that you could potentially stay in your home, even when you are struggling to make mortgage payments.
If you are not yet in arrears, but your payments are squeezing everything out of you every single month, you might be able to refinance to relieve that pressure. In many instances, refinancing can lower your monthly payments. It might even significantly reduce the total amount you owe on the house. If you started your loan on a high fixed interest rate, you could save money every month and overall by refinancing at a lower rate. You can also extend the loan period. For example, if you started on a 15-year loan, you can refinance with a 30-year loan. This will increase the amount you pay overall, but it will decrease your monthly payments.
Get a Loan Modification
Similar to refinancing, applying for a loan modification can ease the burden of your mortgage payments through modifications that you work out with your lender. However, loan modifications are different from refinancing in several important ways. First, while refinancing involves paying off your loan and starting with a new one, sometimes with a new lender, loan modifications are made to your current loan. Second, loan modifications can impact your credit score, while refinancing does not.
Sell it and Rent it Back
If you have looked at your financing and you know that there is no way to continue paying for the mortgage, you do have one more option. Many home buying companies will buy your home and agree to rent it back to you. This can be a fantastic way to ease the financial burden of a mortgage you can’t afford, while still getting to live in the home you love.
Your home is everything to you. You shouldn’t have to lose it if there is any way not to. Be sure to look into all of your options, including selling it and renting it back. You may not own it, but it can still be yours in every other sense of the word.
Joe Homebuyer Utah Region will work with you to create the best scenario for everyone. Click here to learn more, and to read stories about how Bob Buys Houses has blessed the lives of countless others in the Salt Lake area!