Many people are unaware, until they start thinking about selling their home, that they are upside-down or underwater on their home mortgage. This means you owe more on your loan than the current appraisal or market value of your home. For people needing to sell or downsize on their mortgage, it can seem like an impossible situation. Please review these mortgage tips to help provide guidance on how to handle your upside-down mortgage.
Rent - Once you find that selling your home will not pay off the mortgage, start to consider other options. Take a moment to look at the option of renting your current home and moving to a more affordable home option. If your tenant’s rent is greater or equal to the cost of the mortgage, you can use this time to help get your finances back on track and not feel the weight of the higher mortgage payment. Speak with a professional, such as myself, about the options of renting your home.
Refinance - Review the reasons that your current mortgage is high. Mortgages with higher interests rates or short terms can be refinanced to help reduce the monthly cost of the mortgage payment. Always consult your financial expert when considering refinancing to ensure that you receive the best loan that provides the most financial benefits to you and your family.
Stick it Out - Make a list of the reasons that you want to sell your current home. Analyze the reasons and determine if the reasons are financially beneficial or led by wants or other unpractical motives. If the analysis reveals the best financial option is to remain in the home, then make the best of it. Paying the monthly mortgage on time each month builds credit history and reduces the amount you are upside-down on the loan. Eventually, you will reach the breakeven point on your loan, and in time, payoff the loan in full.
The choices regarding your home are big decisions. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin, at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.
