Mortgage Relief - What are the options?

Here's a good overview of the different options that homeowners may hear about when
they ask their mortgage servicer about mortgage relief. It's good to have an idea of the different terms before calling your mortgage servicer.

Forbearance
This is the plan everyone is talking about since the passage of the CARES Act. It’s an agreement with your lender to reduce or delay regular payments for a set time. When the forbearance period ends, the postponed payments will be due all at once.

Modification
This is a legal process that alters the terms of your loan. For instance, a modification could lower your monthly payments by lengthening your loan term.

Deferment
This is a plan that allows you to postpone your payments for a set time then pay them at the end of your regular loan term. “Deferments” and “forbearances” are often used interchangeably, but they are different. A deferment is more beneficial for many because it eliminates the need to make up multiple payments at the end of a short postponement period. Deferments are not available from all servicers.

Payment Assistance Program
This is an arrangement that allows you to make up your postponed payments at the end of a forbearance period by spreading the cost over a period of time. Payment Assistance Programs are not available from all servicers.

Cash Out Refi or Home Equity Line of Credit (HELOC)
If you still have enough income to qualify, accessing equity in your home by refinancing or obtaining a secured credit line may be a good option for lowering your payments, consolidating other debts, and/or creating a cash cushion. A refi will be especially beneficial if current rates are lower than those on your existing financing.

If you have questions about these terms or want to discuss options for a refinance or HELOC, please contact the Jasmine Team directly.
Waterstone Mortgage
573 Dutch Valley Rd NE
Atlanta GA 30324
404-600-1500

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