Home inspections are an essential part of the homebuying process. Evaluating the condition of the home and identifying problems in areas such as roofing, plumbing, or foundations will help prevent unwelcome surprises that might crop up after purchase. But have you ordered a professional environmental inspection?
Using Forbearance to Temporarily Reduce Kansas City Mortgage Rates
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
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.
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:
- Mortgage Release