Louie Latour asked:




Many homeowners fall on hard times with their finances at one time or another. Loss of a job, divorce, illness, or the death of a family member can quickly put your budget under water. Fortunately, you have a number of options to reduce or even defer your mortgage payments. Here are several suggestions that could help manage an unwieldy mortgage payment until you are back on your feet.

I. Contact Your Mortgage Lender

Believe it or not, contacting the mortgage lender before you are behind and explaining the situation could be the answer to your financial problems. Mortgage lenders will generally work with you as long as you contact them before you’re in serious trouble. The mortgage lender may work out reduced or even deferred payments for several months simply by asking. It is usually in the best interest of the mortgage lender to keep your home out of foreclosure. Remember, you will find the lender much more accommodating if you ask before you’ve dug yourself into a deep hole.

II. Mortgage Refinancing Could Lower Your Payments

If the mortgage lender is unwilling to help you with reduced or deferred payments, consider mortgage refinancing. There are a number of loans that can significantly reduce your payment amount for a number of years. Interest only and hybrid loans are two options to consider depending on your tolerance for financial risk. Interest only mortgages allow the lowest payment amount because you are not paying any of the loan principle during the interest only period; this interest only period often lasts as long as five years.

If you have less tolerance for risk, consider a hybrid mortgage. Hybrid loans are a blend of fixed and adjustable rates that will give you a low payment like an interest only mortgage, without the same level of risk. Extending the term length of the loan type you choose will further reduce your payment amount. Traditional mortgages come with thirty year term lengths; however, there are now forty and even fifty year mortgage loans. By choosing an interest only or hybrid mortgage with the longest term length, your payment will be significantly reduced. This new, significantly lower payment amount will allow you to take back control of your budget.

III. Shop Around for the Best Mortgage Loan

Once you have decided mortgage refinancing is right for you it is important to shop around for the best lender. Homeowners often make the mistake of assuming the mortgage with the lowest interest rate is best; these homeowners neglect to factor in lender fees and closing costs, often overpaying thousands of dollars for the new loan. You can learn more about mortgage refinancing while avoiding costly mistakes by registering for a free mortgage guidebook.

Eva

katya asked:


I have a good credit rating, and I need to refinance in early 2010 (because my mortgage payment is too high..I ‘d set it for 15 years instead of 30).
I am preparing: In order to clear my credit profile, I am paying off a large amount business debt on credit cards with a personal family loan .
2 questions:. How likely is a bank ( in 6 months time) to ask me how I did that?
2nd: I’ll be paying $ 1250 a month… I ‘m wondering will they see this in my checking account and suspect it is a loan? should I be making monthly payments to my family member with money orders so it doesn’t show
I am 1000% honest and just want to package myself right because if I don’t get this mortgage payment down, I could be headed for trouble.
I was told I do not qualify for mortgage modification because” I’m not in trouble” Seems only if you are in default, they’ll help !.

Lucille