The term “COVID-19″ is now a household name and will likely be for many years to come, synonymous with terms like “influenza”. There has been a dramatic turn in the economy and everyone is victim in some way. Whether your employer is laying people off or adjusting to having employees work from home, it’s a real issue people are facing everyday. But the news isn’t all bad, if you are a homeowner your luck may be turning:
Mortgage rates are scheduled to decline
In March we hit the lowest mortgage rates EVER, with the average 30 year fixed at 3.29%. This was even before the real COVID issues began to take hold, and as our market stagnates even further we are anticipated to see rates drop yet again.
Here is a forecast:
Rates are unpredictable, but if history has taught us anything its that they will decline when the market is in poor condition, and we’re seeing record numbers of unemployment claims exceeding that of the 1929 Great Depression.
If you are a homeowner and have a stable job this can benefit you for years to come, aside from being a great BUYING opportunity in the stock market, this is a great REFINANCE opportunity for existing homeowners. If your rate is above 3.75% you stand to save money.
Home Values Are Still High
One of the main things homeowners need to refinance is equity. This is the amount of your home you own, without it the lenders are unable to give you a new loan because the risk is too high. But with low rates we are seeing high home values which gives homeowners the chance to save on the interest.
Consider Shortening Your Mortgage
With rates so low you might be able to shorten your mortgage and keep the payment similar. Many homeowners are going from 30 year loans to 20 year loans and keeping the payment the same. This is because there is such a large drop in their interest rate.
The Take Away
To sum it up , homeowners are in the best situation they can be right now. We are in a refinance wonderland and if you choose to miss out on it, you could regret it for the next 20-30 years. We may not see rates this low again for many years to come. Call now or apply online.
What Can I Do Now?
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