Why You Might Want to Reconsider Getting Your Mortgage at a Bank
Mortgages offered by banks come with hidden traps in the form of clauses. If you want to break the mortgage you’ve taken from a bank, you need to prepare yourself to pay a pretty penny. This scenario can be very painful for people who’re facing the brunt of financial crunches and want to get out of a mortgage before it’s up for renewal. They would have to forfeit some of the amount as a penalty.
Under usual circumstances, such a situation would befall only a handful of people. But with the world going through a pandemic, many have had to lose their jobs, hence the need to break their mortgages to make ends meet. On top of that, instead of extending relief to their customers, some banks have pulled their hands away, leaving the customers to their fate.
As a result, several financial experts claim getting mortgages from banks is just not worth it. Let’s try to delve a little deeper into this.
Most of us look at several options for mortgages before fixating on one with the lowest interest rate. While there’s nothing wrong with that thinking, we need to pay attention to the breakage penalties for such mortgages. Although at the time of taking a mortgage, we may believe that there’s no reason we would want to get out of it before its stipulated time, unexpected things do happen, which can leave us no choice but to break such deals.
This pandemic is an excellent example of the reasons that can suddenly occur, forcing one to break a mortgage. Even if that were not the case, illnesses always need to be considered. A health condition can come up, and we may require funds suddenly. In such situations, we may need to get out of a mortgage.
Regardless of the reason, it’s always a good idea to have measures in place in the beginning so that you don’t find yourself in trouble later on. You can talk to your bank about this and find out what their best offer is. Customers can also solicit the assistance of mortgage brokers to compare different banks and their offers. They are professionals in this field and would be able to offer you some good advice.
COVID-19 and Mortgages
With the pandemic ranging across the world, the economy is almost on the verge of collapsing. At this time, a lot of homeowners have lost their source of income, and as a result, their homes. Fortunately, some global financial establishments have come together to understand people’s woes and have agreed to defer mortgage payments. Some banks are giving their customers the option to skip payments as well.
Many recognized banks are among the first to establish solidarity with those who are struck by the pandemic. They have presented themselves as willing to help their customers during this time. After all, allowing customers to break their mortgage on compassionate grounds is the honorable thing to do.
More in Loans & Credit
Rising Renovation Trends for 2021
2020 came with an incredibly unpredictable and difficult-to-swallow shift in daily activities. The outlook of the entire world changed overnight, with...January 11, 2021
Mick Jagger Gifts a $2 Million Mansion to Girlfriend, Melanie Hamrick and Son, Devereaux
Rolling Stones lead singer, Mick Jagger, still got it. One move and the entire entertainment industry busts a move to see...January 11, 2021
Legal Help: Considering Exiting an Abusive Relationship? Here’s What You Need To Know
Family is everything. Our family members are the only ones who accept us despite our faults. But some actions are beyond...January 8, 2021
Financial Advice Experts Say You Should Ignore In 2021
The web is where people can easily share their viewpoints with others from all around the globe. It’s a great way...January 7, 2021
Say Hello to Gen Z TikTok Investing Pros
With around 700 million dynamic monthly users, TikTok has swiftly become the most famous social media platform on the planet, particularly...January 7, 2021
Airbnb Valuation Soars Exponentially Come Year End
A business based on the concept of sharing, Airbnb has been around for over a decade now, providing suitable and comfortable...January 4, 2021
Are You Looking for Your Dream Home? Unlisted Houses Might Be Your Best Option!
The year 2020 has changed everyone’s lives, as well as their outlook on it. A lot of people have decided on...December 31, 2020
The New Netflix Series Is All About Embracing the Regency Style and We Are Loving It!
The Netflix and Shondaland show Bridgerton, inspired by the famous Julia Quinn and her best-selling novels, is going to air on...December 31, 2020
JLo and ARod Just Bought a Miami Mansion that’s Located on a Private Island
It looks like power couple Jennifer Lopez and Alex Rodriguez aren’t letting the pandemic stop them from making serious real estate...December 30, 2020