This past year has put a strain on a lot of Americans’ financial stability. If you’re like nearly three million American homeowners, you eased the burden by opting into a forbearance plan. What your bank may not have made clear is that your payments continue to mount up and maybe due in one lump sum when forbearance expires.
Most people don’t have a half-year’s worth of mortgage payments buried in the couch cushions, and your lender knows this. They may try to approach you with a loan modification plan, which can have additional hidden costs and eat up your hard-earned equity in the form of steeper interest rates and loan terms that can seemingly stretch a lifetime.
We understand that you may be concerned about what you are going to do after your forbearance plan period is up. Forbearance can only help you deal with a temporary financial setback. Don’t worry, you have options.
If you are 62 years and older a reverse mortgage will retain many of the benefits that come with forbearance. Under the CARES act, most borrowers are entitled to a 180 day period of paused mortgage payments followed by a 180-day extension upon request in the forbearance plan. However, if you were to qualify for a reverse mortgage you can choose not to pay a monthly mortgage payment at all. The payment is only due when you permanently leave the home. The best news is that it is surprisingly easy to qualify – so long as you pass a financial assessment, there is no minimum credit score to qualify.
Instead of getting rid of an issue for a short amount of time, find a solution that lasts. You deserve peace of mind in your later years, not a giant financial boulder hanging over your head.
A reverse mortgage will allow you to unlock tax-free cash from the equity in your home while allowing you to remain in the home you love – for life. Since you will still owe the home, you’ll continue to be responsible for property tax, homeowner’s insurance, and maintenance of the property. You won’t have to worry about a setback due to forces outside of your control.
There is a way out. No need to worry about a temporary plan when you can achieve financial stability now. You deserve peace of mind during these uncertain times. Contact South River Mortgage today and we will work with our lenders to get you the best plan.