Are you struggling with paying off your mortgage due to your personal struggles? Well, don’t worry we have got a solution for you!
Depending on your financial circumstances and how much you can afford to pay, the lender may agree to restructure your mortgage by adjusting the terms of your loan. The lender may temporarily postpone your repayments or lower them to an amount you can afford to pay. Although this is not very frequent, some lenders may even agree to lower the interest rate applied to your loan or provide you with a fee waiver.
Find Mortgage Restructuring in UAE to stop your suffering as a homeowner. By changing the monthly payments, you make, along with other terms, a modification can help you keep from defaulting on your mortgage. A mortgage loan modification can be a smart financial decision for you.
Who Can Go for Mortgage Restructuring Services?
Mortgage modification eligibility requirements vary from lender to lender, but in general terms, you must:
Give proof of severe financial hardship, including things like:
- Chronic disease or disability
- Passing away of a family member (and loss of their income)
- Natural calamity or emergency
- Uninsured property loss
- Costs of housing suddenly rising, including increases in property taxes or homeowner association dues
- Job Loss
- Facing High-Burden Ratio
Benefits of Mortgage Restructuring
Although a mortgage modification will lower your monthly payments, you might incur higher overall expenditures throughout the loan. Find Mortgage Restructuring in the UAE if you are eligible for a mortgage modification to reduce your payments in several ways, including:
Cutting Your Interest Rate: You can significantly lower your monthly payment by cutting your interest rate by a few percentage points. The step-up method is frequently used in rate reduction changes, and it entails periodic (usually every five years) increases in your interest rate and monthly payment amount.
Increasing the Repayment Period: You can lower your monthly payments by spreading out your loan repayment over a longer time frame. Just be aware that doing so can result in a considerable rise in the total interest you pay throughout the loan duration. However, you can think about refinancing a loan with a better rate if your circumstances alter and you can now afford a bigger payment.
Change from An Adjustable To A Fixed Interest Rate: If your financial difficulty is due to recurring payment increases associated with an adjustable-rate mortgage (ARM), the lender may decide to switch you to a fixed-rate loan that is more predictable and manageable.
Refinancing: Technically, a refinance does not constitute a modification of your mortgage because it results in a new loan arrangement rather than modifying your current one. As it might be difficult for modification candidates to qualify for a new loan, it is rarely a practical solution. But occasionally, lenders would advise borrowers to go this path if they have large assets, they can utilize to cover the debt in an emergency. Talk to your Debt Management company about your condition before finalizing any decision.
If you’re worried about falling behind on your mortgage payments, you’ll need guidance to figure out what you can do. Find Mortgage Restructuring services in the UAE to get informed about your alternatives. Contact Lin International Debt Management to get assistance in negotiating with the bank and taking care of your debt for you!