Data Shows US Homeowners Increasingly Dropping Mortgage Benefits



Homeowners are less and less in need of deferred mortgage payments, and many are quitting their deferred payment plans. (iStock)

The federal government’s mortgage waiver deadline is due to expire soon, and more homeowners than ever have begun paying back their mortgages. After several renewals, the date June 30, 2021 has been determined as the final deadline for deferred payment.

Last week, the number of mortgages decreased by 7,000 homeowners from last week and by 117,000 mortgages, or 5.4% from last month, according to data latest data Courtesy of Black Knight, a data and technology mortgage company. This increased the number of households participating in active abstinence plans to 2.06 million, or 3.9% of all homes with mortgages.

This was reported by the Association of Mortgage Bankers. similar findings in its weekly survey showing that the number of mortgages fell to 3.93% of the sevicer’s portfolio, or about 2 million homeowners.

If you have given up on abstinence and want to find other ways to save on your monthly payments, check the plausibility to compare multiple rates and lenders without affecting your credit rating.


Improving the economy contributes to the end of abstinence

There may be many more out of tolerance in the coming weeks. Around 400,000 more mortgages are subject to quarterly revisions over the next three weeks, which could lead to many more plans coming out before the Fourth of July. Black Knight experts explained that what happens in July will be a preview of what to expect later this year.

For many plans, the upcoming review will be the final quarterly review in which homeowners will have the option to exit the abstinence regimen or request an extension before their last 18-month abstinence period expires.

Experts say the increase in indulgence exits from the country is a sign of an improving economy.

“While overall employment growth in May was lower than many expected, other data suggest a stronger labor market,” said Mike Fratantoni, MBA senior vice president and chief economist. “This is good news for homeowners who have struggled and are looking for work as more families can recover their income and start paying mortgage payments again.”

If your mortgage is secured by HUD / FHA, USDA, or VA, the deadline for requesting a deferred down payment is June 30th. However, if your loan is secured by Fannie Mae or Freddie Mac, there is currently no deadline for requesting an initial payment. patience.

“Your initial abstinence plan usually lasts three to six months,” says the Consumer Financial Protection Bureau (CFPB). explains in his blog… “If you need more time for financial recovery, you can request an extension. For most loans, your grace period can be extended up to 12 months. Some loans may be eligible for a grace period of up to 18 months, depending on when your initial grace period began. … “


If you want to resume mortgage payments with lower interest rates, or just want to know how much you can save each month, visit Credible to pre-qualify to refinance your mortgage in minutes.


You are out of patience. So now what?

Homeowners have several options for resuming mortgage payments or paying off overdue amounts after exiting abstinence. Many may want to refinance their mortgage at historically low interest rates in order to save money on the monthly payment. For loans secured by Fannie Mae and Freddie Mac, homeowners must make three consecutive timely payments in order to qualify for mortgage refinancing.

Other options for homeowners after the grace period ends depend on the type of loan as well as the borrower. For example, homeowners with an FHA loan will not have to make a lump sum payment for payments missed during the grace period. Lenders must provide them with a second security right that will be paid when the borrower refinances or sells the home. VA loans may be eligible for loan modification plans, while USDA loans may add their payments at the end of the mortgage term.

Since refinancing options vary from one loan to another and from one type of borrower to another, it is helpful to contact your mortgage lender to find out what options you have. Contact Credible to contact a home loan specialist and get your questions answered.


The essence

The latest statistics are encouraging, showing that homeowners are quickly pulling out of their mortgage plans of their own accord as the job market improves. They are not required to pay their overdue amounts in a lump sum, and loan modifications are available for different types of mortgages, so homeowners successfully avoid foreclosures and evictions.

The final renewal period for all homeowners will expire later this year. Homeowners used to have to make at least 12 consecutive home loan payments on time, but new rules created during the pandemic allow many to refinance their mortgage after three monthly payments.

Visit Credible to see your personal mortgage rate and how much you can save.

Have a financial question but don’t know who to contact? Write to the Safe Money Specialist at and your question can be answered by Credible in our Money Expert column.


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