With high unemployment rates and so many people being laid off from work or losing their jobs, it is no surprise that many people are having a hard time paying their bills. During these tough economic times, many people fall behind on their mortgage payments, and have a hard time catching up. Instead of letting your home go into foreclosure, a borrower should seek information from a mortgage adviser for ways to get help with mortgage payments.
Options provided by mortgage lenders
Not all mortgage lenders provide options to help borrowers make their mortgage payments. Hence, a borrower should always check with their mortgage lender regarding mortgage home payment assistance. Refinancing your mortgage One of the most popular ways to get help with mortgage payments is through refinancing. Refinancing a mortgage loan allows borrowers to replace their current mortgage with a new mortgage. Some borrowers choose to refinance to change mortgage programs, from an adjustable rate mortgage to a fix rate mortgage. While other borrowers refinance when interest rates drop so that they can get a lower rate, which will cause their monthly payments to be lowered. Refinancing can sometimes put borrowers in a better financial situation than they were in before. Repayment plan A repayment plan allows borrowers to catch up with missed payments, and hopefully become current again. With a repayment plan, a lender will spread out your missed payments over a certain number of months, and during those months a portion of the missed payments are added to the borrower’s regular payments. After all of the missed payments have been paid current, the borrower’s monthly payment will go back to the regular amount.
National Mortgage Help Center Program The National Mortgage Help Center Program (NMHC), is designed to help struggling home owners avoid foreclosure, by helping them to refinance their mortgage loan into fix rate loans. If a borrower is not able to maintain their current mortgage payment, the National Mortgage Help Center Program will do what it can to help borrowers get their monthly payments lowered. If a borrower’s monthly payment is lowered under this program, the lower monthly payment does not last the life of the loan, it will only last around five years. The five years should give borrowers enough time to get their finances back in order to continue to make their regular mortgage payments.