Purchasing a new home requires a lot of considerations like the location, design, and of course, the price. And when talking about the value of the property, one crucial thing that you have to deal with is applying for a loan to finance your purchase and how to deal with the monthly payments efficiently
So have you considered the amount that you are going to borrow? And if so, are you facing a lot of stress on paying your mortgage lately? Then you’ve come to the right place…
Read more as we are going to share some tips on how to properly manage your mortgage payment in today’s entry.
Refinancing your home loan makes sense if you are looking for a more affordable option for your monthly mortgage payment and if the interest rates are low. But you still have to be careful if you choose this option as there are those who might likely to take advantage of your situation.
So we recommend that you take note of these warning signs before choosing to refinance your mortgage:
- Solicitations that include “limited time” offers
- Online sites that will as for personal information and upfront fees
- Ads that claim to be sponsored by the government
Change Your Repayment Date
If you are somewhat on the verge of managing your monthly expenses, then it would be wise to request for a change on your repayment date.
Also, you can request the payroll department of your company to automatically deduct a certain portion of your salary to be paid directly to your monthly mortgage. In doing so, you reduce the possibility of using your money for something else and leaving out your mortgage payment in the process.
If you have the habit of paying more than the required monthly payment, then you may have access to thousands of dollars in redraw.
Ask your mortgage broker if they will give you access to these funds so you can at least have a breathing space and prevent yourself from getting further into loan arrears.
Selling Another Property Or Downsize
If you happen to own multiple properties, then perhaps you might want to consider selling one to clear your loan arrears.
Or better yet, you can also choose to rent for the meantime and then re-entering with a smaller property (downsizing) to the real estate market.
Negotiate Your Debt
And lastly, you can also turn to certain companies who can negotiate on your behalf and ask your mortgage broker for accepting a less amount than what you actually owe.
This is a recommended option for mortgage holders with unsecured debts as they can no longer recover the entire amount that they owed as they are facing some issues with their payments.
For more mortgage and financial tips, you can visit The Budget Monkey’s website for more information.