If you’re worried about paying your mortgage payment because of the effect of Covid-19 on the economy, you are not alone. Millions of Americans are worrying about how they will pay their mortgage, as well as their other bills.
Just know that you do have options. The following are possible choices to help you.
- ASK FOR HELP
As of the beginning of May, an estimated 4 million have gotten help by participating in lender or government forbearance plans. This accounts for about 7% of all active mortgages. For information on forbearance, we have updated our FAQs to assist. You can request a Forbearance by logging into your account or by contacting us.
- LOOK INTO A POSSIBLE REFINANCE
Refinancing may be an option for you depending on the type of loan you have and the balance remaining on your mortgage. When you do so, you’re taking on a new loan with a new interest rate. Depending on your credit score, you may be able to get a lower interest rate and lower monthly payments than what you currently have.
- HOME EQUITY
If the value of your home has increased, or if you’ve paid down a substantial amount of your mortgage, you could potentially liquidate that equity from your home into cash. As a homeowner, you can look into a possible cash-out refinance. Cash-out refinancing is different than a normal refinance. Just like a normal refinance, it’s still a brand-new loan, but the amount of the loan is more than what you owe. The amount you owe is subtracted from what you receive, and you keep the remainder. You can then use that additional money on your financial needs.