Most people dream of someday buying a house. Indeed, homeownership is a significant milestone for a lot of Americans. Having your own home can mean freedom from rent. You can do what you want with your home without dealing with a landlord.
However, owning a home is a lot of responsibility. Not only do you have to take care of maintenance and repairs on your own, but mortgage payments are often higher than rent payments. According to Rocket Mortgage, the average monthly mortgage payment in Maryland is $3,362.79. This is much higher than the average mortgage payment in the United States as a whole, at $2,209.
Even at $2,200, that is a lot of money to be spending every month, especially when you take into consideration the many other expenses you likely have, such as utilities, groceries, gas, insurance, car payments, and medical bills. If you do not pay your mortgage every month, your home will be subject to foreclosure, and you may have to file for bankruptcy to get some protection.
Affording your Dream Home
It can be easy to struggle with a high mortgage. That is because lenders sometimes approve a buyer for a larger loan than they can afford to pay. This tactic may help you get your dream home, but it is not without its downfalls. People who accept these loans often fail to make timely payments and are at risk of losing their homes to foreclosure. They can also face issues paying their mortgage if they lose their job or face some other financial setback.
Another thing to consider is that some mortgages have adjustable rates. This means that a mortgage payment may not be the same every month. A homeowner’s monthly payments can increase if interest rates rise. If a homeowner suddenly faces a higher mortgage payment and they cannot afford to pay it, they may have to file for bankruptcy.
High mortgage payments can also lead to debt accumulation. Attempting to meet mortgage payments is a struggle that often leads homeowners to accumulate additional debt to cover everyday expenses and emergencies. This often means taking on massive credit card debt or getting personal loans. In some cases, consumers resort to borrowing against the home’s equity.
As debt piles up, it becomes even harder to manage payments on both the mortgage and the newly acquired debts. This can push people even deeper into financial distress.
As a result, many people who fall behind on mortgage payments ultimately go into foreclosure. In fact, studies show that 45% of consumer bankruptcies in the United States are the result of homeowners not being able to afford their mortgage payments.
Contact Us Today
The largest part of debt in a household is typically the mortgage. When a mortgage payment is too high, it can be difficult to pay in full on time every month. Eventually, this can result in bankruptcy. Get the help you need from The Law Offices of Adam M. Freiman. We have handled more than 10,000 successful cases in the past 30 years. Fill out the online form or call (410) 486-3500 to schedule a free consultation.
