Hi, my name is Adriana Guy with Emerge Rebuild. Today, I want to talk about whether or not you should pay off your mortgage after a natural disaster. Please note that these are all just opinions.
Your first instinct when receiving your insurance monies, may be to pay off your mortgage. But here are a few things that you should consider prior to doing so.
If your goal for paying down your mortgage is to eliminate your monthly payments, you may want to consider a forbearance. In which you’re able to postpone your monthly payments by up to 12 months after a natural disaster. If you are considering paying off your mortgage, you want to make sure that you have a full understanding of your finances as well as the costs associated with rebuilding your home. You don’t want to fall short on funding.
If you do find yourself short on funding, you may have to apply for a construction loan which will then have to be converted into a mortgage. This means that you’ll have to reapply for a mortgage and go through the qualification process all over again. Your mortgage may also end up being at a higher interest rate. It’s also important to consider whether or not you are in a current financial position to be able to qualify for a new mortgage.
We hope you found this video helpful. If you’ve already paid down your mortgage, please note that there are still options and we will have a follow up video on that very soon.
We understand that each homeowner’s situation is unique. If you’d like us to review your specific situation, please feel free to give us a call or click the link below to book a consultation.
If you enjoyed this video, please feel free to subscribe to our channel. Once again, my name is Adriana Guy with Emerge Rebuild.