As a homeowner, the current rise of mortgage rates can make it difficult to properly plan and budget as you try to keep your payments current. As you navigate the current housing market climate, it is important you have the knowledge and tools to create a plan to keep yourself in check as current mortgage rates continue to increase.
The Law Offices of Daryl L. Jones, P.A is a South Florida real estate law firm with more than 30 years of experience assisting clients in all of their real estate legal needs. With mortgage rates continuing on the current trend, many homeowners are in need of legal advice to ensure they are taking the right steps to protect themselves and their homes.
Create a Plan to Protect Your Home From Rising Mortgage Rates
As rising mortgage rates on American homes begin to take a toll on homeowners’ wallets, there comes a point where you need a plan in place to ensure your home is protected. Generally, higher mortgage rates mean a higher monthly payment. If your mortgage is not fixed, and is affected by rising interest rates, you are probably concerned about staying current on your mortgage loan. As mortgage rates continue to rise, the following steps will help you create a plan to prevent you from falling behind and potentially losing your home.
Take a Close Look at Your Overall Budget
When looking at your monthly housing budget, take into consideration the entirety of your monthly expenses. A well known general rule of thumb is that a homeowner should try to limit spending on housing expenses (mortgage payments, property taxes, property insurance, and homeowner association or condominium association fees) to around 30 percent of their gross monthly income (before personal income taxes and social security are deducted). If you find you are exceeding this due to rising mortgage rates, you may need to reevaluate your budget.
Investigate Available Interest Rates
Just as it is important to have a trustworthy real estate agent, with the current housing climate it is also crucial that you have a mortgage lender you can trust. When looking into different mortgage lenders, you should compare available interest rates and ask each lender about any fees they may charge. You should also speak with your lender to get a general understanding of how your monthly mortgage payment may change as rates increase over time.
Make Sure You Fully Understand the Terms of Your Mortgage
When deciding to use a mortgage loan to help purchase a home, it is vital that you fully understand the terms of your mortgage. An experienced real estate lawyer can help you understand your mortgage while helping you devise the best path to ensuring your monthly payments are affordable moving forward. This may be done by increasing your down payment when purchasing your home, or you may decide to consider an adjustable-rate mortgage. Your lawyer may be able to help you choose the option that is best for you to ensure you remain current as mortgage rates continue to skyrocket on American homes.
Speak With a Top-Rated Real Estate Lawyer About Your South Florida Mortgage
With rising mortgage rates and even higher home prices, the housing market is less than welcoming to prospective buyers and homeowners without fixed rate mortgages. To help combat the risk of foreclosure that looms as mortgage rates skyrocket, having a plan in place to ensure you are taking all the steps necessary to keep your mortgage current can help exponentially.
The Law Offices of Daryl L. Jones, P.A is a South Florida real estate law firm. Attorney Daryl L. Jones is dedicated to helping clients with all of their real estate needs as they work to avoid foreclosure during this period of rising mortgage rates. Whether you are a buyer or a seller, Attorney Daryl L. Jones has more than 30 years of experience in various types of real estate disputes. To schedule a free initial strategy session, contact us here or call 786-876-9604.