The last two years were very tough for people all around the world. Many Americans are still feeling the financial consequences of them and can be struggling to keep up with their bills. This economic anxiety can be incredibly stressful, and many people are wondering how they can manage to make their monthly payments.
However, there’s still hope for protecting yourself financially during these times. Keep reading to learn five smart ways to protect your finances when times are getting tough.
Many Americans across the country purchased a new home when the economy was going strong, and you may have done the same. However, now the economy has turned around you may find yourself having trouble paying your mortgage along with other hardships with money. Fortunately, mortgage assistance programs can help lighten your financial burden.
If your loan is a Government Sponsored Enterprise (GSE)-backed loan such as an FHA, VA, USDA, Fannie Mae or Freddie Mac loan, there may be some mortgage payment relief options available for you.
You may be eligible to receive deferred payments and home foreclosure assistance, which can give you time to catch up on your finances.
Tip: Contact your mortgage servicer to ask about the different mortgage assistance programs that they are offering.
One option for assistance with your home payments is to get a mortgage to refinance, which is when you replace your current home loan with a new loan at a lower interest rate. Here are a few reasons why a mortgage refinances might be a good option:
- Lower interest rates make your new loan more affordable in the long run.
- Current home refinances rates are relatively low at the moment.
- A mortgage refinance can lower your monthly mortgage payment.
Another option to get money from your home is to work out a cash-out refinance. With a cash-out refinance, you exchange your home loan for a direct payment of cash that is more than what you currently owe on your home. This option is best if you need to downsize your home or simply move to a new area during times of hardship.
