What You Should Know About Mortgage Forbearance


Is a mortgage forbearance the right option for you? Today Kristen Brown of First Rate Financial joins us to help answer that question.

Looking to buy in Alaska?  Get a full home search
 Looking to sell in Alaska? Get a free Home Price Evaluation

Today we’re joined by Kristen Brown of First Rate Financial to discuss an important and timely topic: forbearance. 

According to Kristen, there’s a lot of misinformation out there regarding forbearance. A forbearance is when a lender agrees to lower or suspend a person’s mortgage payment for a certain period. Typically, they’ll initially offer a three-month grace period, and then oftentimes extend it to six months. 

After the forbearance period is over, though, you’re still responsible for paying the amount you would’ve owed during that time. For example, if your mortgage is $1,500 per month and your forbearance is three months, that $4,500 is due on the fourth month. A lot of people assume the forbearance amount gets tacked on at the end of the mortgage, but that’s not the case. 

A forbearance is meant to be a temporary financial solution, but it only works if you can return to full financial health by the time it’s over. Otherwise, it’s not a good option. You’re better off trying to pay your mortgage month by month. 



A forbearance is when a lender agrees to lower or suspend a person’s mortgage payment for a certain period.


If forbearance isn’t a good option, you can also try refinancing. This is another topic Kristen and her office are getting a lot of calls about, and her advice is to look at refinancing your mortgage from a holistic perspective. In other words, does it fall in line with your short-term and long-term goals? 

Too often, she says, people get tempted by low interest rates. They look at where they are while forgetting where they’ve been. Ask yourself: Where are you in your amortization? Are you trying to take out cash? How long will you remain at your current residence? What are the costs associated with living there? Consider all of these factors before deciding whether refinancing makes sense. In some cases, it makes perfect sense; in other cases, it doesn’t. 

Make sure you work with a trusted financial advisor who will be honest about your situation so you can know what’s right for you. They won’t tell you what you want to hear—they’ll tell you what you need to hear. 

Stay tuned for our next video where Kristen joins us once again to talk about the future of our economy. As always, if you have questions about this or any other real estate topic, don’t hesitate to reach out to us. We’re here to help.

The Coronavirus & Its Impact on Real Estate


With everything that’s happening, our main priority is to take care of our families, clients, and friends in the community.

Looking to buy in Alaska?  Get a full home search
 Looking to sell in Alaska? Get a free Home Price Evaluation

With the coronavirus pandemic gripping the nation, it’s time for a quick market recap and a rundown of how we at Madden Real Estate have adjusted to help those in real estate and beyond. Our main priority is to take care of our families, clients, and friends in the community. 

As far as real estate transactions go, it’s been business as usual. Homes are still being bought and sold, but how they’re bought and sold has changed dramatically. If you’re selling a home with us, we’ve probably already contacted you to verify how you want us to show your property. 

If you’re buying with us, we’ve likewise probably already contacted you to discuss your timeline moving forward. People still need to move, and there are movers who are hoping not to be delayed too much by what’s going on, and we’re working hard to not let that happen. 

In any case, we’re taking our technology game to the next level. We’re showing homes virtually, conducting video tours, and hosting FaceTime consultations and Facebook Live events. 



Our main priority is to take care of our families, clients, and friends in the community.


The Fed has dropped their interest rate to zero, and mortgage rates were down to 3% a few weeks ago but have climbed back up to 4% recently. There’s still a great opportunity to buy and refinance, and we’d love to work with your lender to help make that happen. 

With all the businesses that have temporarily closed and services suspended, we’re also working to ensure everyone has the supplies to stay safe and healthy. We’ve volunteered at the local food bank and are considering donating vehicles to Meals on Wheels. 

We especially want to support the businesspeople we work with daily—the lenders, inspectors, contractors, movers, appraisers, etc. With the exception of the lenders, most of these people need to work inside homes to make transactions happen. That’s why we’re advising buyers and sellers to take all necessary precautions during the home sale process. If you’d like to know all of our tips to stay safe, go ahead and reach out to us. 

We’re a secluded community, but that doesn’t mean we’re not at risk, and we’re doing everything we can to help buyers and sellers in a safe and cautious manner. We know there are still people out there who urgently need to move, and we’re here to assist you in any way we can. 

If you have questions about any of these topics, give us a call or send us an email. You can also tune into our radio show on AM 970 every Friday at 12:30 p.m. for more information. We care about you and our community, and we hope you stay safe out there.