Will Forbearance negatively impact credit score? Maybe. To be certain, you must ask your servicer. Your servicer is the contact on your monthly mortgage billing statement. The CARES Act provides protections around forbearance for Federally Backed Mortgages. Your mortgage may not be Federally Backed. To be more certain, get confirmation in writing from your servicer.
What are the unexpected impacts of Forbearance? It may limit your ability to refinance an existing mortgage. Some lenders will not refinance a mortgage in forbearance. Servicers can report to credit bureaus that a loan is in forbearance, even if they report the loan as paid current with no impact on your credit score.
What happens at the end of the Forbearance? Your servicer will provide you options for exiting forbearance at the end of the forbearance period. Be sure to discuss this with your servicer and get documentation to confirm your options. Remember, if you do not meet the terms of your forbearance agreement, your credit score may be negatively impacted.
Rate Flash – During these uncertain and extreme times, Keller mortgage remains committed to keeping interest rates as low as possible while at the same time keeping cost savings as high as possible. There are many factors that go into determining available rates. Although not every client will qualify for the same rate, Keller Mortgage’s average fixed rate for the week of 4/27/20 through 5/3/20 held below 3.375%.
Call me at 469-556-1185 to discuss the best loan option for you.