In South Africa, the mortgages are generally offered for a time period of 15 to 30 years. The time period of your monthly installments plays a key role in determining the ballpark figure that is required by you for a new house. As this longer term home mortgages are spread out for a much larger time period, so they carry a lesser amount of installments than other mortgages.

In case you lower your monthly payments, the lender has the liberty to hike interest rates and this has to be taken in its right spirit. Let us analyze the significant points which will extend your mortgage term without incurring any extra costs.

It is easily predictable the additional fees (interest) earned will be more than those smaller payments despite a long-term mortgage can be a life-saving alternative.

Due to various economic conditions and the present volatile time, when uncertainty is looming over our head, it not only the real estate market but individuals are facing hardships in paying their home loans. Some have even faced foreclosures and repossessions. It would be wise to extend your home loan, as this might provide some help. After all it is your hard work and hard earned money, which has helped you to buy your own home, why should lose on it due to recession.

Even though requesting an extension of your loan is simple, several factors like your track record of good payments, your age and the reason for extension play an important role in reviewing your request. The significance of age can be explained, if for example, a 55 years old man, having left with 17 installments and still needs an extension; the chances of getting an extension are minimum.

So you want to ask your lender to extend the number of years on your home loan. First, you are more likely to get a refinancing if you have a good long-term job history and are currently employed. Second, your mortgage payment history should be pristine.  You may not get an extension in more than one or two missed payments. Third, if you are retired and on a fixed income, your lender may turn you down because the lender doubts you could raise your income to make payments if that were needed in the future.

Seeking an extension of your mortgage is not really a good idea unless compelled by any economic difficulties and hardships. As told earlier, the lenders will always scrutinize the records thoroughly before sanctioning an extension.

It is very crucial to pay the monthly contribution every month before the due date.  In hard times, you will be always happy as a responsible person.

 

Similar Posts:

Share