Mortgage payment deferral or refinance
My Associated Bank lender is offering 90 day deferral of payments on my mortgage. I dont know their exact terms yet; I have 27 more years of payments. I would use funds to pay down credit card debt and keep some for emergencies. I currently pay 4.125% interest on mortgage, should I try to refinance?
Terry Says
If you have good credit and your income is secure, this is a good time to refinance and save money each month. I’ve seen these mortgage deferral deals before, and remember one in which the borrower got really caught because they added the balance to the END of the loan, thereby stretching out payments and adding to the overall amount!
Don’t take this deal. Hidden inside there is something for the bank, not for you. Refi if you can, instead. And try somewhere else, like GuaranteedRate.com or QuickenLoans.
