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No one can plan for everything. Sometimes, mortgage rates that seem reasonable at the time of purchase can become unaffordable later, due to an unforeseen shift in your financial situation. Defaulting on a home loan is detrimental to you and your lender; therefore it can be in everyone’s best interest to adjust your Kansas City mortgage rate so you can make your payments on time.

However, since lenders and borrowers want a mortgage to be paid off in a reasonable amount of time, determining when it’s time to modify your mortgage rate is a complex process.

If You Can Pay, You Should Pay

Most instances of mortgage rate modification are to prevent avoidable foreclosures. Therefore, if you are simply having trouble with your mortgage payments, consider changing your lifestyle before rushing to modify your Kansas City mortgage rate.

Owing More Than Your House is Worth

Fluctuations in the real estate market can cause your property to decline in value while your mortgage rate stays the same. Owing more than your house is worth is frustrating. However, lenders do not often give principal reductions in these circumstances because the housing market:

  • Effects a large number of home owners and they cannot possibly provide a forgiveness of debt to all of them
  • Constantly fluctuates, which can cause your home to be worth more later on

Qualifying a Severe Financial Hardship

Not everyone qualifies for a Kansas City mortgage rate modification. However, those who have suffered a severe financial hardship are the best candidates for this process. Examples of “severe financial hardship” include, but are not limited to:

  • Prolonged illness
  • On-going disability
  • Temporary unemployment
  • Divorce
  • Death of a spouse

These situations often produce intense financial strain, some of which can be alleviated by modifying your mortgage rate.

Need Help Modifying Your Kansas City Mortgage Rate?

Contact Cornerstone Today for More Information

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