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5 Times to Get Mortgage Advice

Professional advice can help you avoid problems if you know when to seek it

5 Times to Get Mortgage Advice

Providing education and advice to older homeowners is the mission of the program I manage, AARP Foundation’s Housing Solutions Center. Unfortunately, many homeowners don’t realize they can benefit from the services we provide; as a result, they often miss opportunities to explore available programs and assistance that might make their mortgage payments more affordable or help them maximize their financial power.

Too many homeowners wait until they are in dire circumstances or faced with foreclosure before asking a professional for advice. However, if a problem is discovered early, when it is small, more options are often available and the steps to resolve the problem are generally easier to manage. In fact, there are five specific times when it makes very good sense to seek the advice of a professional -- before your housing costs become a serious problem.

1. When You Make or Revise Your Budget

Some people revisit their budget annually; others manage their budget less formally. Regardless, if you are trying to make changes in your household budget in order to meet short- or long-term financial goals, it may make sense to consult a housing counselor to see what options are available related to your mortgage to ensure that housing costs don’t inhibit your ability to meet financial objectives in other areas.

See Also: Manage your budget with the home budget calculator

2. When Faced With a Major Expense

Medical bills, a major home repair, the need to purchase a vehicle: New expenses can come out of the blue. If there is an unavoidable expense that you are facing that threatens to throw your budget out of balance, it may be worthwhile to talk to a housing counselor. The cost of housing makes up a huge portion of the average person’s spending, and there may be ways to reduce those costs to make room for unexpected, unavoidable expenses.

3. When There Is a Decrease in Your Income

If you lose your job, have a cut-back in hours or a decrease in wages, one of the first steps to take is to get advice regarding your mortgage. Assistance is often available for people when their paychecks are in transition. Input from a certified adviser could help you to better understand how your new income may affect your ability to make your mortgage payments and ease the transition as you navigate the job market and realign your finances.

4. When Your Mortgage Payments Change

Perhaps your mortgage payments have ballooned or your interest rate has gone up. If a substantial change has occurred in your housing expenses, advice from the Housing Solutions Center may be able to help you better understand what you can expect moving forward and give you options to make changes in your mortgage, if needed.

5. When a Major Life Change Occurs

Divorce, the death of a spouse, a disability … all of these things have a major impact on your housing and financial stability. Additionally, these are all very emotional situations in which people often have difficulty seeing their options objectively. Advice from a professional can help you focus your attention on the most important aspects of your housing and financial circumstances. This individually tailored advice can serve as a guide as you move into a new phase in your life.

The housing education and advice provided through the Housing Solutions Center can be helpful to homeowners in a variety of circumstances, not just those faced with imminent foreclosure. All of the services we offer are free of charge and can be accessed through our toll-free number: 855-850-2525. Please give us a call.

Maicie Jones is a program manager for AARP Foundation’s Housing Impact team. Subscribe to Maicie's blog.

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Older People And
HOUSING

Whether people 50+ own or rent, the repercussions from the recession are severe - abandoned neighborhoods, rent increases and a decrease in affordable, subsidized housing. Millions of homeowners can neither sell their homes nor receive approval to refinance their mortgages at today’s much lower interest rates. 

 

Today:

  • 19 million adults 50+ live in unaffordable or unsafe housing
  • Nearly 25% of household mortgages are underwater - meaning the mortgage is larger than the current value of the house.
  • Foreclosures have been at record levels.

Housing in the
News

New Technologies to Help Seniors Age in Place

(The Wall Street Journal, June 2014) - As the population grows older, engineers and health experts are searching for new ways to prevent elderly people from injuring themselves at home. In doing so, they hope to keep people in their homes longer, a concept known as aging in place. Read

Government Recalls Bed Rails After Reported Deaths

(AARP, May 2014) - The Consumer Product Safety Commission has announced the voluntary recall of more than 100,000 adult bed rails that it says can pose a serious risk of entrapment, strangulation and death. Read

Architects Live in Senior Spaces to Help Elderly

(USA Today, May 2014) - Young architects move into senior housing and live with the people they were designing housing for so they can get a feel for the needs and requirements of the residents. Read