Contemplating Taking a Break?
Written by: Doreen Welsh | Commercial and Agricultural Account Manager | Goderich Branch
COVID-19, and the onset of the pandemic, brought fear and panic to many.
Job layoffs, business interruptions, and closures, along with the hesitancy to leave your house for fear of contracting the virus, forced us into unknown territory and left many wondering how to cope in this changing world, and how to continue to meet financial obligations.
At Mainstreet, we are very committed to assisting our members through difficult times, and we continue to work with each member to manage the effects of this pandemic.
Life happens, and we understand there may be times when it is necessary to take a break from a regular financial obligation, such as your mortgage.
Before making the difficult decision to skip your mortgage payment, we recommend that you take a few minutes to discuss with your Mainstreet advisor, the various options that best meet your needs, now, and for the future.
Together with your advisor, you can weigh in on the short, and long term effects of skipping payments, things like:
- how much more interest will I need to pay
- what happens to the missed principal portion -when payments resume, depending on the amount, rate, and amortization of the mortgage, it can take 4-5 months to catch up just the interest portion of the payment
- if I need to add missed principle to the mortgage at maturity, how much time does this add to my mortgage
- how can I catch up to reduce costs over the long term
If you need help to determine what is right for you, we encourage you to reach out to your Mainstreet advisor to help you make an informed decision. Book a meeting with an advisor today.