Interest rates have never looked better, even for those whose credit has been damaged by their inability to
meet their monthly obligations while trying to pay a mortgage that might have tripled in size since it was first written.
However, if you have a good reserve of savings, and / or a reliable income that
meets your monthly obligations with ease, then cash flow isn't really an issue and you can opt for the greater overall savings of a shorter mortgage.
When you are having
trouble meeting your monthly obligations, it may be to your advantage to refinance your mortgage especially if you can get a lower interest rate or change the other terms of the loan.
After
you meet all your monthly obligations, from your insurance policies to the grocery bills, will you have enough left over to make a new monthly payment?
If you do have enough left over to
meet another monthly obligation, you need to determine how much you need to get yourself through your financial hard spot.
This strategy is usually adopted by people having different loans with varying high interest rates thereby making it difficult for them to
meet their monthly obligations.
If your debt load means you're struggling to
meet your monthly obligation, you may want to consider enrolling in RePAYE (Revised Pay as You Earn -LSB-...]
If cash flow or
meeting your monthly obligations are your main problems, you need to have discussions with your current lenders.
If your debt load means you're struggling to
meet your monthly obligation, you may want to consider enrolling in RePAYE (Revised Pay as You Earn repayment plan).
So, the pressure to
meet monthly obligations is lifted significantly, perhaps as much as $ 400 on a $ 30,000 loan.
And, if the rug gets pulled from under you by a job loss, illness or unexpected expense, you may find yourself unable to
meet monthly obligations.
This ensures that you're always able to
meet your monthly obligations!
One of the most useful things you can do is employ a budget so that you are not relying on credit to
meet your monthly obligations.
Because the family depends on Janice's income to
meet their monthly obligations, Janice has a life insurance policy to help replace her paycheck in the event of her death.
Level 1 (base): earning enough income to
meet monthly obligations, purchasing health insurance, establishing an emergency fund.
Lenders like to see that you've got more than enough income to
meet your monthly obligations, and they evaluate this with a debt to income ratio.