Mortgage holders have questions due to the impending “crash” that so many are talking about with the housing market. Not only are homeowners wondering about the fate of their loans, but those who are searching for their first-time homes also have questions. Home buying is something that is undoubtedly confusing for some, but during these times, it can be even more so confusing to those who are new to this. Ontario Realtors are here to help, so you can have your questions answered.
Are the Rates for Mortgage Loans Going Down?
This depends on when you are referring to. The rates are higher than a few weeks ago but lower than a few years ago. This is subject to change from day to day, so it can be a tricky question to answer.
These rates are currently on a wild ride, and many people do not know if they will stay at a higher spot or dip very low.
Should I Refinance My Mortgage Now?
The rates are lower than back in 2017 and 2018, making it an ideal time for those who have secured mortgages during this time to get a lower rate. However, it is important that those going to refinance remember that they will be getting into an entirely new mortgage loan. This might also mean a new lender.
Can I Stop Paying My Mortgage for a Little?
Since the pandemic has hit, many people are laid off, they are struggling and might not have the income they once had coming in. You should not just stop paying it without reaching out to the mortgage lender, though. It is important that you work with them on a payment plan. Many mortgage companies are working with people who need help covering their payments.
Pausing payments does not entirely skip them. This is important to keep in mind. You will have to pay back the entire amount of payments that you skip once the pause is over.
What is a Mortgage Forbearance?
Forbearance is a program where the payment amount due every month is not due until a specified amount of time. You can pay a smaller amount every month, a portion of the amount that is due, or you can skip payments for the amount of time that the forbearance is approved for.
During the forbearance, the mortgage company will not charge late fees or penalties, and they do not report to the credit bureaus if you miss the payments. This is an agreement you both make with one another. It is important to speak with the lender if you feel that this type of payment help would be useful to you.
If you have further real estate questions that need answers, or you’re uncertain of what the future of home buying means for you, speak with professionals who can help. They can guide you in the right direction regarding a new home, a loan, and any other information about the home buying atmosphere.
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