Don’t put off your plans to refinance due to COVID-19. Low and volatile rates are drawing many refinancers to the market right now. Lenders are operating with reduced staff and struggling to keep up.
There's hardly an upside to a global pandemic, what with the unemployment rate painfully high and the economy climbing out of quicksand. But rock-bottom home loan rates are definitely good news for those in the market.
We are in stressful times. So, how can you take something positive away from COVID-19? If you’re a homeowner, the answer might lie in refinancing your mortgage. For example, you might move to more predictable costs by switching from an adjustable-rate mortgage to a fixed rate. There's enough unpredictability in the world.
Mortgage rates are at historic lows
Today the rate on a 30-year fixed-rate mortgage is 2.99% according to JPMorgan Chase. More than half a point down from last year, a full point down from the year before. So yeah, one could say the timing has never been better.
Such low rates usually bring out home buyers in droves. You'd expect to see house hunters checking out homes and getting pre-approved with lenders.
But many Americans are postponing home shopping for the duration, more comfortable staying put. Instead, lenders are increasingly hearing from people thinking about refinancing. Competition is high for those customers while new home buyers wait things out. Refinancing is currently up 192%, according to the Mortgage Bankers Association.
Lower payments just make sense in these uncertain times
Maybe a recent grad isn't moving out on their own as soon as you expected. Maybe you're relying on savings to make up for an income shortfall due to furloughs, slowdowns, and layoffs. There's no shortage of reasons right now for people to lower their bills.
Fund those home improvements you want now more than ever
Most of us have spent more time at home these past few months than we ever thought we would. We "commute" between a bedroom to a den. We "eat out" on our front lawn and raise a toast to the health of neighbors eating on their lawns 50 feet away, taking in the sunset. We are just plain more aware of our home.
Refinancing can tap into the equity you've built up and use the money on the projects you've been thinking up since stay-at-home started. Replacing your current home loan with a new one at a higher balance, and pocketing the difference, is called a cash-out refinance.
- Today's mortgage rates are dramatically low.
- At Lendgo we strive to match you with the loan product best for you.
- From getting out of an unpredictable ARM to cashing out equity for home improvements, reasons abound to consider a refi today.