Submitted by Erekshen t3_10wg319 in personalfinance
Hi all,
Posted a few times in here so I thought I would come back -
Our mortgage lender just completed their annual escrow analysis and after everything was calculated, our mortgage is increasing from $3,000 to $4,600 for the next year due to a shortage in our escrow account. We weren't at all prepared for this, as we just did some major renovations. We have enough money to cover our mortgage for the next 2 months, but after that it might be tight as my wife is finishing her Master's Degree and won't be working full time for a few months. Yes, I know we should have more in our savings account, etc. but the renovations were desperately needed, so now we are looking for next steps.
I am just trying to prepare for worst case scenarios, so I was looking into our options. I stumbled upon mortgage forbearance and was wondering if anyone had some experience. Maximum amount of time we would need to use it for would be 3 months, as my wife finishes school in June and can go back to working full time. Can we add some months to the end of our loan? Or do we have to schedule a time to pay back the amount?
All of our expenses add up to about $6,500 with the new mortgage amount and with my wife working part time and myself getting paid salary, we take home about $6,000 a month. We don't really spend a lot on extra things and live pretty minimally. Thanks for any help.