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Mortgage Crisis Essay

526 Words3 Pages

People usually take mortgage loans for longer periods in order to ensure that they can easily pay their monthly instalments. The problems that often come with a loan are that people grow older and then find that their social security is not enough to pay off their house loan. Loans that are usually taken in the late 40s are difficult to pay back in long term mortgages.
Here, we present some interesting ways in children who are now adults can help their parents deal with their mortgage issues and eliminate the threat of ending their life in a mortgage situation. These ways present a guide for parents to select better mortgage options and resolve them if they grow older.
Select a Lower Timeline
If you are a parent and sure to enter the age of retirement in a few years then it is always better to plan short term mortgages. Children …show more content…

A lower timescale may force the issue initially but it produces better results with people striving to pay off the loan first before looking into other avenues.
Home Downsizing
A convenient option of lowering the current mortgage situation is to perform home downsizing. By the time your parents are old, you must have moved out of the house and they would be living alone. A large home that was essential a decade ago may be too large now just for the two of them. A convenient option that will also save them a lot of money will be to perform home downsizing.
It refers to selecting a smaller home with a much lower price than that of your current home. You need to take them out of the nostalgia that it is essential to hold onto the current home. Let them know that their grand children will also feel happy in a smaller house as well. The buying of a smaller house may either eliminate the mortgage altogether or reduce it by a considerable margin.
Collaborate on Money Saving

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