5 Tips to Renegotiating Your Mortgage
If you are having a hard time making your mortgage payment, you are not alone. With debt being at the highest it has ever been, many are finding that the cost of living is much more than the amount of money that they are bringing in. This can be quite stressful and can cause people to lapse on mortgage payments and other bills. To avoid missing mortgage payments and risking the loss of one’s home, many choose to renegotiate their mortgage in hopes of lowering their payments. If this is something that appeals to you, this article will highlight some tips that will help you in your endeavor to renegotiate your mortgage with your lender.
♦ Organize all of your documents. Before you can begin to work on renegotiating your mortgage, you will need to organize all of your documents as you will likely need them in the process. Some of the documents that you will need to have organized in a systematic fashion include but may not be limited to credit card statements, loan statements, any unemployment information if this is applicable, paystubs, tax returns, and documentation of any investments or savings that you have. All of this paperwork will help you in the process of renegotiating your mortgage. By organizing all of these documents before starting the process, you can save yourself some time and frustration.
♦ Contact your local housing and urban development office. An agency such as this can provide you low cost or free advice on how to manage your mortgage. They can also inform you on how to apply for government aid programs that you may be able to qualify for to help lower your monthly payment.
♦ Discuss options with your lender. The best course of action is to contact the lender and inquire about possible options when it comes to your mortgage. You will need to be open and honest with the lender about the hardship you are experiencing. Some lenders may offer you a period of time to pay at a lower rate. Others may provide advice on how to refinance or consider other options. It is in your best interest to contact your lender before you fall late on payments.
♦ Look into refinancing offers. It is possible to refinance your home if you have more than 10% equity as well as a credit score of 720 or above. Refinancing gives you the opportunity to pay your mortgage at lower rate and a lower monthly payment. It may, however, extend your payments for several years. This is something to consider when looking at refinancing offers.
♦ Shop around. It may not work out that your current mortgage company can offer you a lower rate or even allow you to refinance or renegotiate. If this is the case, you can certainly shop around at other places. One that is getting a great deal of attention lately and is worth checking out is Altura