4 Tips to Help You if You're Struggling with Your Mortgage Payments

Having a hard time keeping up your monthly mortgage payments? Luckily, there are options which may help you get back on track, including: mortgage refinancing, loan modification and rounding up payments, and making payment arrangements. Below are 4…
Having a hard time keeping up your monthly mortgage payments? Luckily, there are options which may help you get back on track, including: mortgage refinancing, loan modification and rounding up payments, and making payment arrangements.

Below are 4 tips to help you if you’re struggling with your mortgage payments:

Refinance

If refinancing could lead to a significantly reduced interest rate, it might be worth looking into. With a lower interest rate, your monthly payment would likely go down and therefore you could afford to make a larger extra payment. Source: Vertex42.com

Loan modification

It never hurts to ask for something. Isn't that what mom always said? And if you're having trouble keeping up your mortgage payments, one alternative to refinancing could be to ask your current lender for a loan modification. And just what is a loan modification? It's a change in your current mortgage terms, agreed to by your lender, to make it easier for you to make your monthly payments. Source: Homes.Yahoo.com

Round-up payments

Make no mistake: Every dollar counts when it comes to paying off your mortgage. The quicker you can pay off your loan, the more you will save in interest. A painless way to make your mortgage disappear faster is to round up your mortgage payments. So if you’re accelerated bi-weekly mortgage payments are $543, consider rounding up to $600 instead. The extra $57 will do wonders for your mortgage and chances are you will barely notice a difference in your monthly budget. Source: CanadianLiving.com

Payment arrangements

Every account must be analyzed individually according to the individual situation e.g. the severity of the arrears on the account will determine the action to be taken. A "promise to pay" is an arrangement for payment of the repayment in a lump sum. In the absence of full payment then a lump sum with monthly repayments to clear the arrears over a period of time will be determined between the FNB consultant and the customer. A promise to pay will be for a specific date each month and a debit order is a requirement as the repayment will adjust as the rate fluctuates. Source: FNB.co

Keep a clear mind and address the issue head-on and you'll find the best solution. If you have any questions or need further assistance, please give us a call.
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