I know many of you are having a tough time making your monthly mortgage payments in these times of bad economy. If you really can’t handle it with your current financial position, that’s not the end of the line. There may be options available to you that can help make it easier to keep up with those monthly bills. Look into refinancing. With many interest rates at record lows in recent months, it may be possible to lower your monthly payments by refinancing your existing mortgage.
Yep, that can really save you a lot and help you stay in track even in times of a bad economy. For example, a $200,000 30-year loan with a 5.75% rate would cost you $1,167 a month, while the same loan with a 5% rate would be $1,074, a savings of nearly $100 per month. If you have held your current loan for several years, you may find that rates have dropped in the meantime, offering the chance to decrease your monthly expenses.
Be sure to keep your eyes on the fees. You could be tricked into paying higher fees, so always watch out for it.
Be-friend your Lender. I am sure he/she is an expert on your mortgage and can guide you in the right direction. Just tell them your position and they will be more than ready to make things easy for you. Also watch out for scams. Keep your eyes open and patiently go through the plans offered to you and make sure its comfortable to your needs. You always make the final call.
You can find out more about both refinancing and mortgage modifications at the federal government Web site www.makinghomeaffordable.gov.