| The recent economic slump that hit us hard has left | | | | credit rating, and would you be able to obtain attractive |
| many of us reeling with pay cuts and even losses of | | | | interest rates or terms from lenders with your current |
| jobs for some unlucky individuals. Losing your job could | | | | credit scores? Remember that lenders would |
| be extremely hard on you if you are not able to | | | | determine the offer that they are would offer you |
| support your family due to this recent issue. Losing | | | | based largely on your credit rating, thus if it is |
| your job also means that you are unable to make | | | | unfavorable, it is best that you do not opt for the |
| payments as per normal, and the worst affected | | | | refinance option and instead look elsewhere. You could |
| portion would most definitely be your home payment | | | | work towards improving your credit scores, yet it may |
| (as it constitutes the biggest portion of your pay check | | | | prove to be too late once you successfully accomplish |
| every month). Failure to service your mortgage | | | | that. |
| payments would mean one would risk facing home | | | | 2) If you are under the ARM mortgage plan, perhaps it |
| foreclosure complications, something that none of us | | | | is best that you switch to a fixed-interest rate plan until |
| would want to face as it could mean you and your | | | | your finances improves. This would also safeguard |
| family ending up on the streets if your home is seized | | | | you from having to pay for excessive interest rates |
| by your creditors. | | | | when the rates go up. It is better to be safe than sorry. |
| One of the most effective ways to stop home | | | | 3) Determining whether it is a permanent or temporary |
| foreclosure is by taking up the option of refinancing | | | | option - if you intend to live in your home for at least |
| your home. Many have opted for this option before | | | | another 5 years, then you would do well to refinance. |
| successfully, as it would mean you could keep your | | | | However if you are looking to move within two to |
| home and stay in it until your get your financial situation | | | | three years, you could end up losing more money |
| sorted, albeit by paying less for your home during | | | | through refinancing than gaining through it. It is best that |
| difficult time. Ask yourself a few questions before you | | | | you decide well in accordance to your future plans. |
| actually opt mortgage refinancing, as this option would | | | | Once you have good answers on the |
| not work for all out there, and this is an option that | | | | above-mentioned questions, you would have a clearer |
| helps you in the short term, but you are in reality | | | | picture on whether refinancing is the option for you! |
| increasing your debt over the years. | | | | Stop foreclosure now with a clear conscience over |
| Things that you should consider include: | | | | your decision! |
| 1) Is it viable to refinance your home with your current | | | | |