How Do I Avoid A Late Mortgage Payment?
March 10, 2022 | Daniel Dewitt
For first-time homeowners, getting used to managing a large monthly mortgage payment can take some time. It can be difficult for even long-time homeowners and those with large, steady incomes if there is a sudden financial emergency to cope with on top of needing to make their mortgage payments.
A late mortgage payment can do everything from impact your credit score to inch you closer to foreclosure. Thankfully, there are several approaches to avoiding a late mortgage payment month after month. Here are some of the most common ways you can keep yourself on the best financial track as a homeowner.
Helpful Tips To Avoid A Late Mortgage Payment
1. Make Sure You Understand The Payment Agreement
There is a lot of paperwork involved when buying a new home, so it’s easy to forget even the most important details. Make sure you read your loan paperwork thoroughly and understand the mortgage payment process and timeline. You should find directions in the paperwork.
Your payment due date, where to send payments, and how much interest and principal is involved with the monthly mortgage should be on these papers. Sometimes there is a 15-day grace period, and sometimes there’s not. Commonly, after 15 days late, you’ll begin to incur fees on your late mortgage payment that climb every 15-day period of lateness.
2. Create A Realistic Budget
If you’ve never lived on your own, it’s vitally important to create a monthly budget as a new homeowner. Even if you have experience incorporating monthly rent, a late mortgage payment is an entirely different beast with different consequences you have to seriously consider in your budget plan.
Make sure you consider how your mortgage payment now impacts the rest of your budget, including the amount you spend on food, gas, and utilities. Your mortgage payment is a need, not a want, on your budget breakdown. You might find you have to make some serious changes until you learn how to be comfortable with your mortgage on your budgeting plan.
3. Consider Mortgage Modification
If you’re struggling with a regular late mortgage payment, the amount of your mortgage may just be too high for you to cover. By going through a mortgage modification, your loan’s original terms may be adjusted to make them more affordable.
The past-due terms and requirements may be changed, the full term of your mortgage may be increased to say, from 30 to 40 years, and your interest rate may possibly be lowered all due to a mortgage modification. All can go a long way to eliminating a late mortgage payment.
4. Take Advantage Of Financial Counseling Services
If you are finding it difficult to avoid a late mortgage payment even when trying out different approaches, financial counseling services may be for you. Most communities offer these services for free, and they can help you identify the heart of the issue and come up with some workable solutions.
The United States Department of Housing of Urban Development approves counselors who can help make your mortgage manageable and a regular part of your budgeting plan and make sure you understand all the options available to avoid a late mortgage payment.
5. Enroll In Automatic Payments
The average person has more than a dozen separate bills each month; everything from car and home utility payments to television streaming services and magazine subscriptions. It’s tough to add another payment to your list and manage them all properly. One great way to prevent a repeatedly late mortgage payment is enrolling in auto-draft.
An auto-draft basically withdraws money from your bank account on a set date to pay your mortgage without you having to worry about a due date or late fees. There are even apps that can help you organize all your automatic payment bills in one space.
6. Consider Assistance Through An Auto Title Loan
Another option you have to consider is an auto title loan from Southwest Title Loans. Through the option of qualifying for an auto title loan, you can get the relief you need to avoid the damage a late mortgage payment can have on your financial present and future.
An Arizona title loan uses your vehicle’s lien-free title as collateral for cash. This money is used to help you handle emergency expenses like a late mortgage payment or medical bills. The in-person process takes as little as 30 minutes to find out if we can approve you for a title loan of up to $15,000. You can also get the cash the same day or the next business day.
You can begin the process by going on our website and filling out the short auto title loan inquiry form. A representative will then give you a quick call to go over the required items and set up an appointment for you to come to the nearest auto loan location for a vehicle inspection. You can also have us meet you instead if you’d rather not come into the store.
The inspection allows us to determine how much you could get. We will also assess your lien-free title and your information to determine if you qualify. If you do, we will go over the loan terms and paperwork. Once done, you’ll get your loan cash either the same day or the next bank business day. You even get to keep your vehicle during the loan repayment.
Take These Tips And Get Your Mortgage Payments Handled
It can be difficult to manage homeownership expenses. If you find you need help avoiding a late mortgage payment, one of these tips is bound to help. This is especially true about an auto title loan from Southwest Title Loans. So, if you think a title loan could help, fill out the online form, give us a call, or visit one of our locations to get started today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.