Mortgage Loan Archives – Page 2 of 2 – Fred Gruber

Understand Coronavirus Mortgage Relief Options The coronavirus pandemic has impacted everyone. For homeowners, they might be wondering how they are able to keep up with their mortgage in light of shelter in place orders, financial difficulties, and unemployment problems.

Federal agencies and regulatory authorities are putting relief measures in place during the pandemic to help people who might have trouble keeping up with their mortgage. When it comes to coronavirus mortgage relief, there are a few tips that everyone should keep in mind.

Talk To The Lender First

The first step is always to talk to the lender directly and see if there are relief options. The last thing A lender wants us to have a bunch of loans go into default. When this happens, the lender might be forced to sell the property for a significantly reduced cost, meaning they will lose a significant amount of money. They do not want their borrowers to foreclose either. Therefore, as long as they are given enough notice, they should be able to help borrowers by adjusting their payment plans.

Understand The Options

Everyone has a different type of mortgage and every contract is different. Borrowers me to take a look at the details of their plans and make sure they understand what their options are. For example, borrowers with certain types of loans might have lenders who are obligated to offer deferred or reduce mortgage payments for a period of six months. This is called forbearance.

This means that borrowers do not have to pay their mortgage for a few months and will not be charged late fees or added interest. It is important to know that they will owe this money eventually. All borrowers need to read their contracts to see if they qualify for forbearance.

Foreclosures And Evictions Have Been Halted

Finally, during the pandemic, Federal officials have imposed a nationwide halt when it comes to foreclosures and evictions. This moratorium only affects borrowers with certain plans. Therefore, everyone needs to read their contracts closely to see if they’re playing qualifies. Furthermore, there are certain cities, counties, and states that have halted foreclosures for everybody.

The coronavirus pandemic has been difficult for everyone. It is important to keep these mortgage relief options in mind and ask for help from professionals. That way, everyone can understand all of your options.

Target The Lowest Borrowing Costs Possible When Applying For A Mortgage When someone is applying for a mortgage, it is important to consider the other costs that go along with taking out this type of loan. While many people focus on the down payment, the size of the loan, and the interest rate, there are other costs that might go along with taking out a mortgage.

These hidden fees are sometimes referred to as “nickels and dimes” that the lender tacks on to the loan to try to make some extra money. When compared to the size of the loan, many borrowers shrug this off because the loan is so big; however, nobody should have to pay more than they should. It is important to aim for the lowest borrowing costs possible when applying for a mortgage.

The Hidden Borrowing Costs Of A Mortgage

There are several hidden borrowing costs when it comes to a mortgage. One of the most common hidden borrowing costs is called origination fees. An origination fee is a fee that is tacked onto the mortgage for printing the papers. It is important for borrowers to ask about origination fees and try to get them waived, if possible.

A second hidden cost when it comes to a mortgage is called points. Points are interest payments due at signing. In this manner, the lender is asking for more money upfront in an effort to earn interest on that money sooner. Borrowers should keep their eyes open for points and avoid them, if possible.

Finally, some borrowers might also be asked to purchase PMI. While this isn’t a “hidden” cost, it is something that borrowers should know. This is mortgage insurance that the borrower purchases for the lender to protect the lender against the risk of default. Borrowers can often avoid this expense as long as they put enough money down; however, this down payment hurdle might be lowered if the borrower has a strong credit history and plenty of assets.

Reduce The Cost Of Taking Out A Mortgage

These are a few of the most common added costs that borrowers might face when they take out a loan. Everyone needs to keep their eyes open for these hidden costs so they don’t pay more than they should.