6. Get a Home Equity Loan
A home equity loan can offer instant help to those who are struggling to pay their mortgage. However, note that this smart strategy only works if you have a lot of equity in your house, which means that your home is valued at much more than you owe on it.
Anthony Pili, director of strategic planning at Greater Hudson Bank in Bardonia, New York, advises struggling homeowners to consider paying off a mortgage with a home equity line. “Banks usually cover all closing costs on home equity lines. The savings in closing costs can be used to pay off the principal balance quicker,” says Pili.
He adds that this strategy is really effective for borrowers who actually pay more than what is owed each month, since the minimum payment is usually just the interest that has accrued during the month.
