Cutting mortgage payments in half reduces delinquency risk by 55%.
Mortgage payment size matters for avoiding default. Lowering interest rates can significantly reduce the risk of missing payments, even for borrowers who owe more than their homes are worth. Cutting a borrower's payment in half can decrease the chance of falling behind on their mortgage by about 55%. This shows that reducing payment size is a powerful way to prevent defaults, regardless of how much the borrower owes compared to the home's value.