The next step is to thoroughly research these grants to ensure that you satisfy the eligibility criteria and complete their applications. The complexity of grant applications makes it worthless to apply for grants for which you are ineligible. Save your time by only completing applications for those grants that you feel you have a chance of receiving. Non-profit housing organizations and your city's housing authority may be able to assist you with your application.
Modify your mortgage loan. In many cases your payment is no longer affordable due to changing personal or financial circumstances. A loan modification can reduce your payments, waive fees, lower your interest rates, and more. Banks and lenders are also offering loan modifications with interest rates as low as 2%. They have determined this is in their best financial interest as well. Learn more on low interest rate loan modifications. Find all of the pros and cons as well as details on modifying mortgages.
On the other hand, if you know you will be selling in the not-too-distant future, the lower interest rate that comes with an ARM might make sense. Even if rates jump in a few years, you’ll be selling anyway so it won’t impact you. You can also select a hybrid ARM that is fixed for a certain number of years (3, 5, 7 or 10) then adjusts annually for the remainder of the loan. The risk with an ARM is that if you don’t sell, your payments may go up and you may not be able to refinance.
Finding a trustworthy and competent mortgage lender is an important and often overlooked step of the home buying or refinancing process. Signing off on a mortgage is one of the most significant financial decisions you can make, one that can last anywhere from 15-30 years. So, you need to make sure you’ve found a mortgage lender who will assist you through the process, ensuring you’re not making any mistakes along the way.
A third option – usually reserved for affluent home buyers or those with irregular incomes – is an interest-only mortgage. As the name implies, this type of loan gives you the option to pay only interest for the first few years, and it’s attractive to first-time homeowners because of the low payments during their lower earning years. It may also be the right choice if you expect to own the home for a relatively short time and intend to sell before the bigger monthly payments begin.
If you choose a variable rate mortgage deal, then the amount of interest you pay can fluctuate over time. Mortgage rates often rise when the Bank of England raises the base rate, as borrowing costs become steeper for lenders, and these higher costs are passed on to homeowners. That’s why many homebuyers opt for fixed rates to provide peace of mind that their interest payments won’t change.
A commission-based mortgage lender will primarily be motivated by closing your mortgage, whether or not the terms of the mortgage are in your best interest. With salary-based mortgage consultants, you won’t have to worry that your mortgage lender is locking you into a huge financial commitment in order to make their own mortgage payment for the month. Interest rates change daily and vary based on your financial situation. So, you want to be sure your loan officer or consultant takes the time to get you to know your current finances, as well as your outlook and goals.
Citigroup will be providing mortgage help to millions of homeowners. They are committed to stopping foreclosures and in helping homeowners stay in their homes. Billions of dollars in fees and principal reduction will be provided to qualified borrowers. They will also provide additional mortgage assistance to the unemployed and those who have had a reduction in their income. Read more on the Citi unemployed homeowner mortgage assistance.