The American Bankruptcy Institute recently highlighted that average long-term mortgage rates are at their highest levels since mid-March, citing an Associated Press report. According to Freddie Mac, a 30-year fixed-rate mortgage averaged 6.79% as of June 1, 2023, up from 6.57% just a week earlier. A year ago, that number sat at 5.09%. In addition, a 15-year fixed-rate mortgage averaged 6.18% on June 1, up from 5.97% a week earlier and 4.32% at that time a year ago.
While added interest makes monthly payments soar for first-time buyers, this also affects existing homeowners with adjustable-rate mortgages set to hit an adjustment period. Refinancing might not be the answer, but loan modifications or bankruptcy could help prevent foreclosure, short sales or other instances of financial distress.
In certain cases, a lender may offer the ability to alter the conditions of the original agreement through a loan modification. Alternatively, bankruptcy has multiple protections that may allow additional time to cure an arrearage on the mortgage and help keep an individual or family in their home. The right option depends on the unique circumstances, including any other debts owed, for the mortgage holder.
Sader Law Firm also emphasizes that bankruptcy and bankruptcy alternatives like mortgage modification are for people who have an asset to protect, and our attorneys’ goal will always be to find the best solution for your individual situation.
With interest rates likely to remain high as the Fed continues to combat inflation, moving or refinancing will continue to be difficult scenarios. If you have questions about a mortgage or are considering filing for bankruptcy, contact Sader Law Firm at (816) 561-1818 for a free phone consultation.