In response to the tremendous financial toll that the COVID-19 pandemic has had on homeowners across the country, the Biden Administration extended the benefits offered under the CARES Act through June 30, 2021. Among the many benefits that it offers are mortgage forbearance. Now that the benefits are set to expire, you may be one of many homeowners wondering what you can do to prepare to start making mortgage payments again.
The first step is to assess your current financial situation. If you have recovered financially from job loss, medical expenses or both, you may be ready to pick up with your payments without problem. On the other hand, you may not yet be ready to assume that financial responsibility in full.
The good news is that you have a few options. For example, you could ask your lender to provide continued relief, such as through a forbearance extension or a loan deferral. Your lender may also agree to restructure your payment schedule to allow for intermittent payments. These options may allow you more time to either find a job or sell your home.
The other option that may be available is to refinance your existing mortgage. This could be a smart option if your expenses are higher now because of medical bills that accumulated during the height of the pandemic. It could also be a good strategy if you had to accept a lower-paying job or if other financial adjustments had to be made. When you refinance your mortgage, your new loan amount will be based on the current value of the home. In many locations, property values have increased dramatically. Because of this, you may be able to lower your payments while also potentially pulling some equity out.
The MortgageDepot team is ready to help you explore the options available to you. To learn more, contact our lending experts today.
Contact one of our loan consultants to learn more.