Bad mortgages often happen to good people. It is estimated that approximately 1 million people in Kentucky are strapped with mortgages they can't afford. Rising interest rates, lay-offs, and a lack of wage increases have contributed to the situation. If you find yourself struggling, a Kentucky refinance loan may be just what you need to get out from under your unaffordable mortgage payments.
The money you pay in interest has a significant impact on your mortgage payments. If you currently pay a high interest rate, your best bet will be to refinance into a better rate. You have two basic options: a fixed rate loan or an adjustable rate loan. Each type of loan has its benefits, but neither is right for everyone. The rate type and the loan you choose should be based on your current financial situation, as well as predicted future earnings.
One of the easiest ways to save money on your Kentucky mortgage loan is by changing the term. If you currently have a 15 or 30 year loan, you may want to consider refinancing into a 40 year loan. By lengthening your term, you can see an instant drop in payments.
Loan Program Changes
When most people think of mortgages, they think of traditional 30 year loans. However, conventional loans are not the only financing option available today. Interest only loans, hybrid loans, and deferment loans can give you the payment breaks you need now. These loans are usually best for those who need instant relief and low payment options for the first several years of their loan term. If you are a senior citizen, you may want to consider bypassing these options and switching to a new, and highly popular reverse mortgage.
Visit Kentucky Lending Center to see our Top 3 Home Equity Lenders in Kentucky , whether you are looking for home purchase, refinance or a home equity loan.