A possible relief proposal for homeowners

The pandemic's effect on the economy is making it tough for some to pay their mortgages. The Trump administration is considering a plan to allow a delay in making mortgage payments.

Michael Smith at Houston's STA Wealth Management says it's a good idea.

"If we're gonna keep the consumer strong we're gonna need to help them along the way until this thing is done."

Smith says the delay needs to be more than a month or so for some.

"If you're gonna give me a time frame I think a six month time frame is something reasonable."

Smith says we've seen mortgage delays in the past but we've never dealt with a viral pandemic like this before.

"We have seen pandemics that delayed and heightened unemployment; I'd expect that to be the same here. So, I think today we're better equipped with aid packages that can help us get through this at a lot faster pace, which is what we need."

We’ll have to see if the loan terms would be stretched out or if borrowers will have balloon payments, if this happens.

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