How Do I Negotiate A Mortgage Refinance If I Lost My Job?
Ideas to help you refinance your home mortgage after job loss
During these tough economic times, banks are working diligently with home owners to keep them in their homes. If you have lost your job, you may consider a mortgage refinance to either lower your interest rate or restructure into a fixed rate rather than adjustable mortgage rate.
How Do I Talk to My Bank About My Refinance After Job Loss?
Many people have been laid off from work, but if you are open and honest with your lender, you will most likely be able to work on refinancing your mortgage. Talk with your current lender and see if they can get you into a fixed rate. They want you to stay in your home and don’t want to see you go into foreclosure.
How Can I Increase My Chances of Getting a Refinance Loan?
Find out if you have equity in your home. The bank will send out an appraiser to assess your home. You can build equity in your home easily by upgrading your landscape, painting the interior and exterior, or adding new fixtures. Housing prices are rising all over the country, so chances are your home has already accrued some equity over the past year.
What Other Measures Should I Take?
Look for work. Don’t sit around and wait for a new job. Be proactive and show your lender that you are willing to do whatever it takes to keep your home and refinance your mortgage. Having some form of income will increase your chances of getting a new loan even if you are unable to replace your lost income entirely. You may also consider selling some items you have in order to pay the fees from the back to process your loan. You may have several large items you are not using that could sell easily in online auctions or yard sales.
*Affects pricing. With the No Closing Cost
Option, borrowers finance the closing costs instead of paying for them at
closing. Borrowers who pay closing costs at closing may qualify for a lower
interest rate. Some upfront fees (ex. credit report and appraisal) may apply
and may be credited at closing.
*Refinancing or taking out a home equity loan or line of credit may increase
the total number of monthly payments and the total amount paid when compared to
your current situation.
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