Are you feeling stuck (for now) with a mortgage that you know needs improvement? You may have an above market interest rate due to poor credit. Maybe interest rates have moved lower or you pay unnecessary private mortgage insurance. Perhaps you want to sell your home but feel trapped due to a high mortgage balance…whatever the case is, you have been living with a mortgage with less than ideal terms. So what do you do?
Here are some practical ways to improve this part of your life:
- Stay positive. Sure, you are in a position that you would rather have avoided. But remember, many situations have solutions and many of those solutions are already available to you. If it appears that a solution may take longer than you had hoped, don’t despair! Ask yourself – did I eat today, have a place to sleep last night? With a little bit of time, thought, patience, and steady work, any situation can change. It’s time to make a plan and go for it!
- Identify the underlying issue. Why are you in a position that is less than ideal? Do you have a low credit score? Is your house value below your loan balance? Do you have unnecessary private mortgage insurance, a high interest rate, or a long mortgage term? Could this situation be remedied immediately or will it take time?
- Review your options with a trusted advisor. Low credit scores can be improved over time, your house value can often increase if you make the right changes, and mortgage balances can be paid down. Refinance and early payment methods can eliminate private mortgage insurance and lower your interest rate payments. Once you have identified your main issue, call a trusted friend who can either help or who can refer you to someone who can help you with your situation.
- Make a plan and stick to it until your situation has improved. Once you know your options for improvement, go for it and do not stop until you reach your goal! Most less-than-stellar situations are the result of issues piling up over time and will take time to resolve. Be patient. While some remedies are simple (i.e., refinance to lower your payments and drop PMI), many will take months or perhaps a year or so to work through. Hang in there! If you keep at it you will make progress and eventually reach your goal.
Kent Cochrum, Senior Loan Originator
(630) 330-1334 mobile
(630) 634-5136 office
CIBM Mortgage, a division of CIBM Bank , member FDIC
330 S. Naperville Road, Wheaton, IL 60187