The COVID-19 (Coronavirus) is a terrible health and economic crisis. Many homeowners are wondering what the future of their finances and mortgage might look like.
The good news for many homeowners is some banks are extending forbearance options to allow for delayed mortgage payments. (Contact your lender to see if this is an option for you.)
Some good news in the form of interest rates recently came out. The average rate for 30-year mortgages that are fixed dropped to 3.47 percent, according to CNBC. This was a decrease from 3.82 percent.
Subsequently, refinances increased again with applications jumping 26 percent, according to CNBC.
If you think your current interest rate is higher than where interest rates currently sit, you might want to consider a refinance. Refinancing may allow you to decrease what you are spending on your mortgage on a monthly basis.
At a time when people are analyzing their budgets to try to decrease spending during this time of uncertainty, opening up extra cash flow could help.
Make sure you consider all of your refinance options (cash-out, term change, etc.). It is also important to determine if refinancing makes sense for you over the long-term. This is something your loan officer can go over with you.
If you have any questions about refinancing, or anything related to your mortgage make sure you contact us today.