Beg Borrow Or Steal Make That Mortgage Payment
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Beg, Borrow, or Steal: Ensure You Make That Mortgage Payment
Overview
Many clients approach us with the hope of refinancing after they’ve missed a mortgage payment. They often say, "I just missed one payment and need to refinance before it's too late." When asked about their credit, they usually respond, "I pay everything on time, but fell behind this one month."Sadly, it's often too late. Missing a mortgage payment can have severe long-term consequences. Your home is likely your largest investment and liability, so it’s crucial to prioritize making those payments on time. Missing a mortgage payment could end up costing you thousands over the years, unlike missing a credit card or utility bill payment.
The Impact of Missing a Payment
While missing a payment might not dramatically drop your credit score, it severely impacts your mortgage credit rating. Initially, you're rated an "A" for paying on time, but missing a payment drops you to an "A-" or a "B". This can block you from refinancing options for up to two years and exclude you from low-rate programs. Repeated lateness can degrade your rating further, limiting you to high-rate options or preventing refinancing altogether.The Refinancing Dilemma
If you’re looking to refinance or buy a new home, missing payments complicates the process. Often, you need to borrow more for home improvements or bill payoffs. However, a poor mortgage credit history could land you in a Catch 22?"either disqualified from financing or only eligible for unaffordable options.Solutions to Prevent Missed Payments
1. Automatic Payments: Set up direct debit with your lender or bank to ensure your mortgage is paid first. Choose a day soon after payday and before other bill due dates.2. Proactive Refinancing: If you anticipate missing a payment, consult a loan officer immediately (not one from your current lender). Refinancing can provide extra cash, help repay bills, and in some cases, come with up to 90 days of no payments with Zero Payment & Zero Interest loans.
3. Consider Different Loan Products: Investigate Option Adjustable-Rate Mortgages (ARMs) and Fixed-Rate Option ARMs for temporary financial relief if you're confident you'll stabilize soon.
Plan Ahead
Mortgage refinancing and loan processing take time, typically around 15 days. It’s essential to act before trouble hits. Don’t scramble for money last minute, instead, reach out to a professional. Address the issue now to avoid regretting missed opportunities later.Always protect your financial future by making your mortgage payments a top priority. Everything else on your credit report can be addressed or negotiated, but mortgage latenesses are permanent marks. Don’t find yourself ready to refinance only to realize you’re too late. Plan ahead, and secure your financial well-being today.
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