If you own a home in Michigan and used a mortgage to attain it, the money you owe is probably one of your highest debts. Fortunately, you can utilize mortgage curtailment to reduce or eliminate this debt before you must pay it off completely. Doing so can help relieve the debt payments you must make periodically, helping you get through tough times when you may not have as much income.
What is mortgage curtailment?
The definition for “curtailment” is to lessen or shorten. When applied to a mortgage, you are reducing the amount of debt you need to pay. Implementing mortgage curtailment allows you to pay off your mortgage balance quicker before maturity. You can do this by making additional payments toward the principal amount.
Why should you use mortgage curtailment?
Having the ability to obtain a mortgage for your home makes it easier to purchase the property. However, doing so leaves you with a significant amount of debt in most cases. Any debt you owe needs to be paid back, leaving a burden on you. If you’re able to utilize mortgage curtailment to lessen this debt, it can provide you with more financial freedom. Eliminating the debts you owe will make it easier to get by if you ever lose your income.
Guidelines for mortgage curtailment
Implementing mortgage curtailment doesn’t mean that you are making an extra payment: It’s money you are using to pay off the debt in addition to the required monthly payment you must make. You can make a mortgage curtailment payment while you make a regular mortgage payment, or you can make it at other times as well. If you want, you can even pay off all the debt you owe on your property with one mortgage curtailment payment, helping you avoid the possibility of filing bankruptcy in the future.
Having the ability to make mortgage curtailment payments can make it easier to handle times when your income may not be as high as it is currently. Taking this action now will help you cover your debts during those times.
