Owning a home of our own is a dream that we all share. Many people work for years to get up the down payment to buy the home that they dream of owning. The recent global economic crisis has put that dream in jeopardy for thousands of people across South Africa.
If you are one of these people who are making the effort to buy your own home and are concerned that you may be affected by the global money crunch, you may also be concerned about how the crisis may affect your home mortgage. First you need to know that no matter what you cannot under any circumstance fall behind on your mortgage. Once you do you begin an endless circle of being behind payments and trying to catch up that may take you years to get out of. Let’s look at some of the ways that you can make sure that you don’t fall behind on your mortgage payments.
Contact the Bank and See if a Refinance is Available
Many times a person causes more trouble for themselves, by not communicating with the bank concerning their financial situation. If you contact the bank and explain what is going on, the bank will a lot of times will allow you to refinance your mortgage and get caught up. Refinancing will not only lower you payment but will allow you to use some of the equity that you have built up over the current home value to get ahead on the payment a little.
Double Payments Now, While You Can
If you are in the position that you can, make it a point that you double your payments. This will serve a dual purpose. The first is that you will reduce the amount of time that it takes to pay your mortgage. The second benefit will allow you to have a buffer in case there are problems down the road. It never hurts to take advantage of a financial windfall now. The fast you can get the house paid off the sooner you can rest easy in the fact that the home is yours forever.
Pay Something, Anything, Every Month
If you think that not paying anything on your mortgage is better than not paying the full amount, you are wrong. If you contact the bank and explain what is going on, the bank will allow you to make a partial payment and get caught up later down the road. The bank does not want to have to foreclose on your house. This causes them a lot of trouble and in the end as they will have to file paperwork in order to foreclose on the property. Most of the time, the amount that you didn’t pay will be added to the “balloon” payment at the end of the mortgage, but to qualify for this you have to make some sort of payment for the month.
If you follow these simple tips you will be able to ensure that you never fall behind on your mortgage payments and face the possibility of foreclosure. If you pay attention to the advice that you have learned here you will be secure in your dreams of owning your home, even with the current financial situation. Owning a home is a very rewarding and fulfilling experience, one that you need not take advantage of. In then end you will need to make sure that your dream of home ownership does not turn into a nightmare.