Mortgage Protection –
Mortgage Protection – easing your biggest concerns.easing your biggest concerns.
Many people worry about the risks of defaulting on their mortgage, which can have a huge negative impact on their credit score. If you're one of these people, our guide will give you four ways to minimize the consequences if you ever were to fall behind on your mortgage payments.
There is no such thing as a foolproof way to guarantee your good credit standing if there are any legitimate reasons for falling behind with your loan repayments. However, it's still worth looking at some options that may help keep you from facing the negative consequences that so many others face in this trying economy.
This article will discuss a few ways that homeowners can protect their financial future while minimizing the risk of going delinquent.
1. Consider a SMI loan
Another acronym to add to your growing list, the "SMI" or "Single Monthly Income" loan is a useful product to allow you to pay your mortgage on a monthly basis, without having payments automatically deducted from your account every month. This feature allows you to spread those payments out over 11 months instead of 10, for example. The application process is similar to that of any other loan, and the interest can be adjusted based on your needs at the time of application.
This product may be right for you if:
· You're self-employed or receive commission income (you could set up your payment schedule around those peak earning and income periods).
· You're a contractor and can't predict your income.
· You don't want to have a huge payment taken out of your account once or twice a month.
· You want to pay smaller, more manageable payments each month.
2. Pay ahead on your loan terms
If you're well-paid, feel that you'll be in the same position for the next few years, and have enough extra money to pay off some of the mortgage while still meeting the minimum payment requirements, then this may be right for you. This is essentially an interest-free loan form your lender (but only for as long as you stay in that position). It's a popular option for many homeowners, and it certainly benefits the bank as well.
This can be risky, because if your income or financial situation changes, you could find yourself with a huge amount of debt to pay off after just a few years. However, paying ahead on your mortgage is the safest option in an "all or nothing" environment if you're confident that you can handle it.
· You're able to make extra payments on your monthly payment plan without making any changes to your life.
· You want to save money on interest charges while also protecting yourself from defaulting on the loan.
3. Consider the various mortgage options
Your first option should always be to try to make your payments on time. No matter how much of a financial hardship you're facing, being late can damage your ability to borrow money in the future, or get an insurance policy. If for some reason you've already missed some payments, don't let that cause you to worry about getting mortgage protection. Many people wait until they need these things to look into them, when it would actually be better to start researching early into it so that you'll know exactly what type of coverage you'll need and when you'll need it.
There are many types of mortgages available on the market today. Some of these may also be able to reduce your chances of defaulting on your mortgage.
· Fixed rate mortgages.
· FHA loans (these now have a "HARP" program for struggling homeowners that allows you to refinance your mortgage).
· Private mortgages can offer adjustable rates and a variety of finance options, as well.
4. Find out more about credit repair options
Many people are frustrated when they have poor credit ratings because of unpaid bills and other factors that make it difficult to get new loans or refinance existing ones. If you have a significant amount of debt, credit repair options may prove to be the best solution for your financial situation. This could include paying down debt, going from an active to a passive account, and taking other proactive steps to improve your credit score.
You can find out more about all the different options available by visiting our credit repair guide . We'll be happy to answer any questions or provide further information that you might need in this regard.
This guide was written for those who are already facing some challenges with their finances. We want it to help them find the best solution that fits their needs and budget. If you are looking for a new mortgage, or just want to understand more about the different options that are still out there for buyers, go to our page on mortgages .
· You're facing a foreclosure and need to consolidate all your debts.
· You haven't been able to get credit for an emergency.
· You have the interest but don't have the money.
· Or, you simply want to pay down your debt faster than you are able to on your own. We can help!
Many people aren't aware of what is actually involved in applying for a refinance or consolidation loan. There are several things you should know before making a final decision. It's a good idea to research the different options that are available online and get some more information on your own before signing up for anything. It can be difficult to determine what will benefit you most, but with the right information, it's easier to compare one product against another and see what meets your needs.
The first thing you should consider when looking for a consolidation loan is whether or not it can help you achieve your goals. This is especially important if you want to pay off debt faster or have trouble getting credit on your own. If you aren't sure that a consolidation loan is the way to go, it's always a good idea to talk to a qualified financial adviser.
A lot of people who have been denied credit in the past decide against trying again because they don't feel that they'll have any better luck this time around. Many lenders now offer bad-credit mortgages and loans for those who have had financial problems in the past. If you're looking for a way to improve your finances but need some help getting started, then consider getting in touch with us today!
We specialize in helping those who are facing financial difficulties by providing them with advice and options for improving their situation.
Conclusion
A lot of people are worried about what the future will hold, especially when it relates to their finances. No matter how much you earn or how well off you are, there's always the chance that your financial situation can change. It's wise to take steps to ensure your long-term financial health no matter what your income level is.
If you have a steady income and a little extra money each month, then paying down any debts you have now is one of the best ways to protect yourself against future financial uncertainty. We'll be happy to discuss all the options available to you and provide further information on how consolidation loans work if you've never applied for one before.