When it comes to achieving dreams, perhaps having a house to call your own goes at the top of the list. Who doesn't want a house to call their own? The dream is to save enough to buy a good house somewhere where your family can stay and have a lifetime of happiness, without too many things to worry about.
Unfortunately, not a lot of people have the capability of earning that much money from the get-go, and others rely on methods such as a mortgage to slowly pay for their respective houses. This takes a lot of time, and for dads struggling with a mortgage, it can be mortifying. However, managing fatherhood and mortgage shouldn't be terrifying if you follow these tips.
Remember that a mortgage is something a lot of people are paying for, and mortgages are built to last for a long time to accommodate for the lower income of many who are applying for them. Being able to pay for your mortgage properly means being able to secure proper sources of income and being smarter with your overall finances.
According to the Federal Trade Commission, paying your mortgage is half of the battle when it comes to getting your dream home. Even if they have a mortgage a lot of people fail to prevail because of certain setbacks. Unfortunately, not paying your mortgage consistently may give lenders enough reason to not let you get your home. If you're a part of the population of dads struggling with a mortgage, saving your home and finding ways to protect your mortgage can be a bit tricky, but not impossible.
Mortgage Assessment: Where Are You Now?
One of the most important aspects of turning your mortgage struggles around is to know where you're standing and how to deal with it. It's important to understand what kind of mortgage you have and the parameters surrounding it so you can get the full picture before making a move. If you're a bit lost, you can actually communicate with your loan servicer to get all the information you need regarding your mortgage. Here’s a basic breakdown for you:
● Just what kind of mortgage do you have, and will the rates increase? For instance, one kind of mortgage is a hybrid adjustable rate mortgage, or an ARM. These mortgages tend to be payable with fixed payments for a set period of time before turning into loans that can be adjusted. For instance, in a 5/1 hybrid ARM, the interest rate is fixed for five years and then is adjusted every year after.
● Another type of mortgage is the ARM itself, which has adjustable rates from the beginning of the repayment period. This means your mortgage payments will be changing over time.
● Another type is a fixed rate mortgage, where the rates and interests of the mortgage are fixed throughout its lifetime. Insurance, escrow, and taxes are some of the factors that get to change the amount you pay with the loan.
Payment Assessments: Are You Behind?
If you're experiencing troubles paying your loans with your current system, you may try to consult a professional to see if refinancing to another kind of loan can be an option for you. This is something that you should discuss thoroughly with your loan servicer as well. If not, there are other options for you to take as well, including:
● Reinstatement: This option allows the loan servicer to receive money from you that is based on the entire amount past due, including penalties and late fees, on a date you both agree to.
● Repayment plan: This option allows the servicer to give you a set time limit for you to be able to pay the amount you owe them by adding part of what was due before to your current repayment.
● Forbearance: This option allows the mortgage payments to be suspended or reduced for a set time. You return to your regular payment schedule afterwards, but you also have to pay a lump sum or a set of additional partial payments.
● Loan modification: This option allows you and your servicer to change the terms of the loan as a whole to make the repayments more manageable for you to handle.
● Home selling: This option allows you to sell your home in order to pay your debt.
● Bankruptcy: This option allows you to declare bankruptcy, which may put a stop to some of your loans, but this will be reflected in your credit report for 10 years. This can make finding work, getting insurance, or getting credit much more difficult.
Proper Planning and Financial Management Are Key
As you may have read in the above, mortgage isn't too horrifying a notion to manage alongside fatherhood given the right adjustments and care. Proper planning and financial management can help you get the home of your dreams, even if you struggle a little.
Always remember that your dream for a home to call your own is something that is possible with time, patience, and proper care. Sometimes all it takes is a little creativity and a dash of effort for the whole family to be able to pay for that mortgage, and dads are more than capable of letting the family know what the goal is and how to achieve it properly.
Remember, your inability to pay your mortgage can lead to real estate foreclosure, which is why if you're in need of information on the legal aspects of real estate foreclosure, feel free to click here to learn more information.
Daniel Grate is a professional writer in the law industry. She currently writes pieces on various law topics for the common reader. In her spare time she spends quality time with her family and friends.