Lenders will also use the fully indexed mortgage payment including taxes and insurance to determine the dti. This means loans with small initial start rates, are not any easier to qualify for due to the small initial payment.

When you refinance your home you are typically able to skip at least one mortgage payment, helping to free up a significant amount of money in the short term. Some programs even allow you to defer payments for up to 6 months!

There are many options for refinancing that can make your holidays better. You may want to use the equity in your home to consolidate holiday bills. Another option is to refinance to lower your monthly mortgage payments, this frees up more cash that you can use towards paying down credit cards.

If you are self employed, a small business owner, or your income is derived from real estate investment property or rentals, one of the most popular ways to reduce your minimum monthly mortgage expenses is by refinancing into a mortgage with minimum payment options. These mortgages allow you to trade illiquid equity in the property for a payment which is often half of a regular monthly mortgage payment. These pay option or cash flow mortgages have fixed and adjustable rates, however they may not be a good choice for homeowners who have little or no equity, or borrowers who wish to retire in the home which they are refinancing.

You can lower your monthly expenses by refinancing into an interest only loan. This will help you to save a good amount of money from your monthly mortgage payment alone. If you were to consolidate debt in your refinance and switch to an interest only loan this would save you a lot of money per month and truly maximize your monthly cash flow.

Late payments are a factor that can impact your credit score. Be sure to make your credit card and mortgage payments on time to maintain a good credit score.

Lenders may not accept a single month’s payment when you are more than one payment past due. It is important to contact your loan servicer as soon as you feel you are going to fall behind on your mortgage payments.

There can be many reasons for a low credit score. The most important part of your credit history is your payment history, and the most important part of your payment history is your mortgage history. Make sure you know exactly what your mortgage payment history has been in order to get qualified.

There are also loans available for people who have been delinquent on their mortgage payment. You may still qualify for a loan even if a notice of default has been filed on your property. Consult with your mortgage professional to review your options.

If you are not sure you can afford your mortgage payment after the rate increases, call your local mortgage broker today to discuss your options while you still have some!