Tuesday, July 4, 2017
How To Know If Your Home Is Worth Saving With A Loan Modification
A person’s home is usually their biggest investment, and also their largest asset. So when it is put in danger it is worth taking steps to protect that asset. You might need to protect your home from natural disasters or theft and this is done with insurance, or you might need to protect your home from falling into foreclosure. If you are facing the loss of your home because you are not able to make your payments, you should consider asking for a mortgage modification so your payments go down and you are more able to pay on time. But you do need to take into consideration the value of your home versus the potential value in the long run if you are able to save your house.
Here are some tips to help you figure out if your home is worth saving with a loan modification:
• What rate you will be given in the modification. If it is only slightly lower, the payments will not go down enough to be affordable, and you may want to see what other options you have to get out of debt.
• How long the modification will last, if you significantly extend the amount of time you are paying for your home you may not see any financial benefit for a while. It is worth weighing the amount of money you will pay out over time versus how quickly you will see a return on your investment.
• The value of your home, and the likelihood it will either hold its value or increase in value. If you anticipate a decent increase over the next few years and are planning on staying in your home for a while, you will likely build equity that you can benefit from when you eventually sell the house.
Everyone has different needs and circumstances, let us go over yours with you so you can make a decision that works for you. If a modification is not for you, we can explain other options to you and work with you towards your goals. Don’t let the situation get out of control, call today for help.
For more information about a mortgage modification, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.