4 Ways Your Mortgage Can Ease Financial Stress
- Mortgage Refinance (Refi) Loan. There are several reasons to consider a refinance of your mortgage right now. While many people traditionally refinance to reduce the terms of their loan or drop years of payments, this is a perfect time to reduce your monthly payment by locking in at a lower interest rate than your current mortgage. You can roll the closing costs into the loan for little-to-no upfront costs. And as an extra bonus, you skip one month of mortgage payments during the process.
- Cash-out Refinance. Another type of mortgage refinance loan enables you to cash out some of the equity in your home. This might be a way to cover some unexpected costs if you don’t have any cash reserves, like an emergency fund, saved up.
- Home Equity Line of Credit (HELOC). A Home Equity Line of Credit is a good option if a mortgage refinance would require raising your current interest rate. Instead, you can tap into the equity you have built up in your home over the years. In more typical times, a HELOC might be used for a home improvement project. A HELOC gives you access to money if you need it but can sit unused as a backup plan if you are able to make ends meet. In other words, it can serve as a safety net, as needed, up to a certain limit.
- Mortgage Forbearance. State Bank of Cross Plains does have an application available online for customers to request a forbearance review, to make reduced or no payments for a specific period of time. You can also contact our mortgage assistance center online or at (608) 798-5207 or (877) 775-9411 with questions.
Resources and Information
- Be aware of your current interest rate on your home mortgage loan. For a refinance to help relieve financial stress, you need to be able to refinance at a lower rate.
- You will still need to qualify for a new loan, just like always. If you are experiencing a significant change in income, a refinance may not be a viable option at this time. In this situation, we encourage you to have a discussion with your lender about deferment or other mortgage assistance.