When a monsoon storm is coming, most desert dwellers know what to do. Close the windows, secure the patio furniture and bring in the pets. Those who don’t know what to expect or how to prepare will probably have a much bigger mess to clean up when it’s all over.
The same can be said for financial storms. When economic forecasts predict harsh conditions, being prepared goes a long way in mitigating the damage and minimizing recovery time.
While no one can predict the future, especially when it comes to the economy and financial markets, it’s probably a good time to cut spending, reduce monthly obligations and pad your emergency fund.
While it may seem counterintuitive, refinancing your mortgage might be a good way to accomplish these goals. Here’s how:
Reduce monthly obligations – if you suffer a loss or reduction of income, you may struggle to meet your monthly obligations. Pro-actively lowering your minimum required payments puts you in a better position to weather the storm.
Pad your emergency fund - In an economic slump, it can take longer than expected to get back on your feet. Having extra cash in your emergency fund gives you a little more time to recover.
If you do find yourself in a worst-case scenario, call us first. Not only can we can help you navigate the available relief programs, but we will do whatever we can to help you protect your home, your credit and your future lendability.
If you have questions about Fannie Mae or Freddie Mac mortgage relief programs, including the recently announced forbearance option for homeowners impacted by the COVID-19 pandemic, please visit https://calendly.com/bolesgroup to schedule a call with one of our licensed loan officers. We will always provide you with the most recent, most accurate information available.