3 Budget Tips for COVID-19 – Save Money on Your Mortgage
As the coronavirus pandemic continues to spread worldwide, multiple businesses are forced to fire their employees or close their doors—temporarily or permanently, unemployment rates soar a record high, and the global economy shrinks. Many are now experiencing the consequences and the negative effects of the health crisis on the economy and urged them to apply for unemployment aid.
Struggling to keep up with paying your monthly mortgage loans can be difficult and stressful, especially during this uncertain time. To help you manage your finances more wisely and save more money on these regular payments, here are some budget tips you can follow:
Call your lender
Experiencing financial complications is typical during the pandemic. If you have been affected by a job loss, a job leave, or reduced leave that impacted your income, explore your available options by calling your lender or a trusted financial advisor. They can give you expert financial advice regarding your situation and boost your chances of getting the help you need, so make sure to reach out to them as soon as you know you are going to experience difficulties paying off your mortgage.
Refinance your mortgage
To help ease financial strain due to the economic impact of the coronavirus, the Federal Reserve reduced interest rates to zero percent. This led to mortgage rates to hit a new record low.
Lowering your monthly mortgage payment could be done through refinancing, especially when you have an adjustable-rate mortgage and the promotional terms are about to expire. However, make sure to compute the cost and see how much you could save to determine if this would be beneficial for you.
To help you figure out if this is the right time for you to refinance your mortgage, consider if you plan on staying in your home for a long time, you want to alter the terms of your current home loan, you are interested in reducing your mortgage term, and you are looking to cut down your monthly mortgage payments. Call skilled mortgage professionals near you to finalize your loan.
Pause your mortgage payments
Some banks offer up to three months of a mortgage pause. Applying for mortgage forbearance could be the right option for you if you are having difficulties making monthly mortgage payments due to the pandemic. However, keep in mind that some lenders require you to repay the entire lump sum all at once when the suspension ends, so if doing this isn’t possible for you, consider asking them if you can pay those you missed and add the extra payments onto the end of your loan. Doing this extends your payment term without having to shell out a huge amount of money in a single payment.
In this troubling time when cash is hard to come by, exploring your options to save money and boost your financial health is essential, and one way to do this effectively is by easing your mortgage loans. Remember the mentioned tips above and consider working with skilled mortgage professionals to help you address your financial needs.
Find the right mortgage loan for you by reaching out to our experienced mortgage professionals in Colorado. We help you navigate your way through the entire home purchase or refinance process. Schedule an appointment today!