What is Mortgage Stress?
What is mortgage stress and how do I avoid it?
Mortgage stress is a term used to describe the financial strain and anxiety that can result from having a high level of mortgage debt. Mortgage stress can occur when a borrower's income is not sufficient to meet the monthly payments on their home loan, and can lead to financial difficulties and the risk of default. Here is how to avoid mortgage stress and protect your financial health.
One way to avoid mortgage stress is to carefully budget and manage your money. This means tracking your income and expenses, setting financial goals, and making a plan to meet your monthly mortgage payments. By creating a budget and sticking to it, you can ensure that you have enough money to cover your mortgage payments, as well as your other living expenses.
Another way to avoid mortgage stress is to make extra payments on your home loan. By making extra payments on your loan, you can reduce the amount of interest you pay and shorten the term of your loan. This can save you money in the long run, and can make your monthly payments more manageable.
Third, consider refinancing your home loan to get a lower interest rate or a longer repayment term. If you are struggling to make your monthly mortgage payments, refinancing can provide some relief by lowering your interest rate or extending the term of your loan. This can make your monthly payments more affordable, and can help you avoid mortgage stress.
Finally, seek help if you are experiencing mortgage stress. If you are struggling to meet your mortgage payments, it is important to seek help and support as soon as possible. You can talk to your lender, a financial advisor, or a housing counselor to get advice and support, and to explore your options for managing your mortgage debt.
In conclusion, mortgage stress is a financial strain that can result from having a high level of mortgage debt. To avoid mortgage stress, it is important to carefully budget and manage your money, make extra payments on your home loan, consider refinancing, and seek help if you need it.
Speak to a mortgage broker today about refinancing to set yourself up to pay off your home faster and avoid paying unnecessary interest.