As a single mom, you want to provide your children with the best commodities in life. But making financial decisions is often difficult without the help of a partner. Don't feel alone because there are many other people who face the same problems you do. According to a recent survey, 35% of homes are supported by a single parent. Unfortunately, 40% of these households lie near the poverty zone. Taking the right financial decisions can make your life as a single mom and the lives of your children much better.
Just because you might have financial difficulties doesn't mean that you don't have to desire to be financially stable. In America, your first step toward financial independence involves owning a home where you can raise your children safely. There can be many reasons as to why you are considering refinancing.
Debt can be refinanced if you want to take advantage of a more favorable interest rate. This can help you greatly because it reduces your monthly payments or can give you a reduced term. Chances are that as a single mom, you have many other debts to fulfil. You can consolidate your debts into one loan. This makes it easier to stay on top of your debt payments.
You can also reduce the amount you pay each month through refinancing, however, it will increase your term period. Some single mothers also prefer to decrease or modify their risk by swapping their loan from a variable rate to a fixed rate. This will eventually allow you to have more cash in hand to spend on things you and your children need.
If you think the current house you live in does not fulfil the requirements of your children, do not hesitate to go for refinancing. Additionally, if you think that you have way too many loans piled up and are heavily in debt, refinancing just might solve your problems.
The eventual decision you should make is to go ahead with refinancing because it can help provide you the home you always dreamt of. There are several plans that you, as a single mom, can take advantage of to purchase your dream house. Here is a list of two companies that offer assistance for refinancing.
â€¢ Housing and Urban Development: HUD is an institution that offers guarantees on loans for loan recipients who do not qualify for a mortgage loan. If you do not meet the requirements for a standard mortgage, you can apply to FHA for assistance. If your application is approved, there are better chances of you receiving a mortgage loan. A loan guarantee does not ensure that you receive the loan, but it increases the possibility of you receiving one.
â€¢ Home Investment Partnership: This partnership offers a HOME program that can help you with the down payment for a new house. This program specifically caters to low-income families so you must fall within a specific income level. Unfortunately, being a single mom is not enough to qualify you for this loan.