Avoiding having to Refinance
Get to Work! Find out what you have and what you owe. Make up an expense sheet with all of your bills. Cut out any luxury items. Get your spending under control!
Create a plan! Figure out what you can and cannot spend. Pay your mortgage first...figure out what the costs are to refinance versus the savings you will make. Set aside some money for savings
Check your mortgage contract. There will likely be penalties for refinancing. However, if you are on a variable rate mortgage (ARMS), the advantages to mortgage refinancing will usually outweigh the costs. If you're unsure, check with your bank branch.
Step 4
Check if your payments have been ontime. Mortgage lenders will look to see how good you have been with your mortgage payments. if you are frequently late, you are less desirable to have as a bank client.
Step 5
If after completing steps 4 and 5, and you are still having mortgage problems, contact your bank representative immediately. Its in their interest to help you so that you can keep making your payments and have the money to pay for other expenses you need to live.
If after talking to your bank representative, you determine that this is a temporary debt financing problem, then perhaps you can suggest skipping a few months of payments to help you get back on track. You will still have to pay interest on your money while you have a "payment holiday"
If your financial problems look to be long term, talk about refinancing mortgage debt options.
Step 8 If all has not worked, consult the services of a financial specialist that can advise you to your options
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