Many homeowners experience periods of time when they are unable to afford their Kansas City mortgage rates. While some financial hardships can justify a permanent reduction, most will command a temporary reduction to your mortgage rate. Not all mortgages or people qualify for these reductions, but the most common temporary reduction is forbearance.

How Forbearance Works

If you are not able to refinance your home loan, forbearance can temporarily reduce Kansas City mortgage rates. Once you qualify for forbearance, you and your mortgage company negotiate the following:

  • How long your forbearance period will last
  • The amount of your reduced mortgage rate
  • Repayment terms

Repayment Terms

Temporarily reducing Kansas City mortgage rates through forbearance involves repaying the difference once a reduction period is over. Typical repayment options include:

  • Reinstatement, or making an all inclusive one time payment
  • A repayment plan, which adds a set amount to your original monthly Kansas City mortgage rate
  • Modification, which lengthens your mortgage term by moving the unpaid payments to the end of your term

Repayment terms are usually decided on the qualifications of your unique financial hardship.

Getting Started

If forbearance sounds like the solution to your current mortgage, there are several steps you need to take before applying for a temporary reduction:

  • Collect any important financial information such as mortgage statements, other monthly payments (car loans, credit card payments, etc), paystubs, and tax returns
  • Prepare a clear explanation of your current financial hardship that is causing problems with your mortgage rate
  • Contact your loan officer to learn more about your forbearance options

Understanding Your Options

If you believe your financial hardship requires a permanent reduction of your mortgage rate, you have several options at your disposal such as:

  • Refinancing
  • Modification
  • Mortgage Release

Learn More About Reducing Kansas City Mortgage Rates

Contact Cornerstone Mortgage, Inc. Today at 800-965-9910

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.