A mortgage is a long-term commitment, and for some people, finances can naturally change over the life of a longer mortgage loan. In some situations, borrowers will find themselves in a financial position where they’re really struggling to make monthly mortgage payments work within their budget.
At Altius Mortgage and our partners at Mortgage Ogden, we’re here to offer solutions. The primary outlet for many people here is a mortgage refinance, something we’ve discussed at length in these blogs in the past – speak to our brokers about how refinancing might benefit you. But did you know there are other options for helping lower mortgage payments without refinancing? Here’s a brief look at a few of these options.
In some cases, a severe financial hardship can render your mortgage payment no longer affordable. In these cases, you may qualify for a loan modification, a situation where a lender helps restructure your loan to lower the payment.
You don’t always have to be in default to request a modification. You may be able to request one if you’re facing an imminent reduction to income like the loss of a job or retirement, and it’s always a good idea to get ahead of these issues – contact your lender as soon as you know this situation might be taking place.
In other cases, you might be able to eliminate private mortgage insurance if you’ve been paying it. This is often an option when home value is rising rapidly – this and your credit score will play a big role. If you have solid equity in your home and a good score, you can often cancel mortgage insurance and lower your monthly payment.
In many situations, the mortgage becomes the whipping boy for what’s actually significant budgetary concerns in other areas. This could be credit card debt or other financial concerns, and in some cases, prioritizing ways to attack this debt can do much more to improve your monthly flexibility than lowering the mortgage or putting your home equity at risk. Considering that credit card debt is unsecured and mortgage payments are not, it’s often advisable to prioritize the mortgage if you have to choose.
To learn more about lowering monthly mortgage payments, or to speak to one of our brokers about refinancing options, call us at Altius Mortgage today.