Financial planner talks adjustable mortgage rates, life insurance plan

Rick Bloom

Dear Rick:

I have a couple of financial problems that I hope you can help me with. My first issue is that a couple of years ago when I bought my house, I originally thought I’d only be in the house a couple of years and thus, I got an adjustable-rate mortgage.

My plans changed and I plan to be in the house for longer than I expect. As a result, my mortgage has adjusted and my rate went up substantially, and I’m not sure what I should do. I cannot afford the new payment. What options do I have?

My next question deals with my life insurance policy. I have a 10-year term policy that is maturing. When I went to purchase a new policy for another 10 years, the rate was substantially higher. I am not sure I still need the policy, but I’d like your opinion. I have no dependents, but I do have two adult children who are on their own.

Thank you, Julie

Dear Julie:

Rick Bloom

The first thing I would recommend with regards to your house is that you contact your mortgage lender. There may be some sort of program that you may qualify for that can be beneficial to you.

In addition, I would also look into the Michigan Homeowner Assistance Fund. This program was established as a result of the American Rescue Plan Act of 2021. This program is to help homeowners who have financial difficulties due to the coronavirus. Under this program, if your household income is less than 150 percent of area median income, the property is your primary residence, and if your financial hardship was a direct result of COVID-19 on or before Jan. 21, 2020, you may qualify for up to a $25,000 grant from this program. For more information on this program, you can contact them at 1-844-756-4423.

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