Exp Realty LLC

A Guide to Mortgage Payment Holidays

by Krystal Faticoni 09/08/2019

Are you having money issues? Well, you are not alone. Financial problem is something that affects everyone from time to time. When money is tight, and your mortgage is due, you might have heard this advice many times — " Take up a mortgage payment holiday" But before you do that, get this: taking a break from your mortgage repayment is not always the best idea. In this post, you will uncover all you need to know about mortgage payment holidays.

What is a Mortgage Payment Holiday?

A mortgage payment holiday is an agreement a person may reach with his/her lender permitting them to reduce or halt their monthly mortgage repayments for a specific period. The duration of this break can range from one month, six months or even a year. However, the length of the breaks depends on a person's financial situations and the terms laid out by the lender.

Who is eligible for a Mortgage Payment Holiday?

Most of the times, Mortgage payment holidays are offered by lenders when:

- If a person has accumulated a generous amount of credit via mortgage over-payments.

- If unforeseen expenses prevent a person from making repayments.

- If there is a change in the financial circumstance of a person.

When nursing the thought of taking a payment holiday, always remember you will need a decent history of your repayments, most times with no back payment due during the previous year of your mortgage.

The Good Side of a Mortgage Payment Holiday

It temporarily takes some pressure off your monthly expenditure until you get a new source of income.It is the best way to find your feet again instead of choosing to go into mortgage arrears.

The Bad Side of a Mortgage Payment Holiday

Even though you are not making mortgage payments, your remaining mortgage balance is still piling up interest.After the holiday payments, your mortgage repayments will be higher than they were before you took the payment holiday.Since it will affect your credit file, you might find it challenging to get credit.

A break from your payment might be a prudent choice if the only option is going into arrears. But don't forget the "bad side." If something confuses you about how to you will make a payment, then you will need to speak to your lender.

About the Author
Author

Krystal Faticoni

Full Time Realtor® servicing Mecklenburg, Cabarrus, Union, Gaston, Iredell and York counties. I have 10+ years experience in sales and customer service. She received many awards since breaking into the business. One of them that I'm most proud of is the Rising Stars of Real Estate I received shortly after entering the business. 

I'm confident with my work ethic, determination, negotiating skills and overall customer service, I can assist anyone with their real estate needs. First time home buyers and those looking to relocate, look no further. I stay side by side with my clients to assure they not only find exactly what they are looking for, negotiate the best deal possible and educate them along the way. I believe that buying and selling a home for most is one of the biggest purchase you will make in your life. I want my clients to understand the process from start to finish. I also enjoy new construction and investors as well. Need to sell your home in order to purchase another one? Having been through that I know exactly how nerve wrecking that can be. Let my past experiences and expertise guide you through the process smoothly. 

I am a wife and a mother of 2. When I'm not selling Real Estate you can find me out on the soccer fields. Both my children play travel soccer and my husband coaches for Pfeiffer University. I was born and raised in central New Jersey. I later moved to the shore where we purchased our first home and started our family. We made the move to NC in 2015. Since being here we've totally fallen in love with all the things this beautiful state has to offer. I also spend my time volunteering for Cabarrus County Special Olympics, where I'm on the committee. I am also a part of the Cabarrus County Parent Advisory Council, PTA, leader of our neighborhood HOA Social Committee and 

I'm a volunteer for the Mecklenburg County schools as well. A Child's Place is a non profit organization in Charlotte that I also volunteer with. I agree with Audry Hepbrun, when she said; "As you grow older, you will discover that you have two hands - one for helping yourself, the other for helping others."

Licensed in North Carolina & South Carolina