The Mortgage Bankers Association recently reported that home refinances are up 210% from last year’s levels. Interest rates have a lot to do with that. After all, when rates drop, monthly housing payments can also decrease, potentially saving homeowners thousands of dollars through the life of the loan.
Let us look at what the mortgage market looked like before the COVID-19 crisis, and what it looks like now.
Pre-COVID-19 mortgage rates
Prior to the COVID-19 pandemic and the resulting shelter-in-place orders enacted for the majority of the country during the month of March, the mortgage market was arguably the strongest it had been in over a decade. Rates continued to reach historical lows, and the housing market was stable. Then, we were hit with the pandemic. What does the current mortgage market look like now?
Current mortgage market
The current mortgage market has had to adjust to the current economic situation, which has placed restrictions on certain loan types, but many homeowners are still able to refinance their homes. In some cases, it’s easier to be approved for a refinance because you have a good history of paying your mortgage. Also, homeowners have the added benefit that rates are continuing to drop; that alone is often a big enough reason to pursue a refinance. Did we mention that you don’t need a down payment to refinance?
Will a refinance benefit you? Ask yourself these questions.
- Will your interest rate go down?
- Will a refinance result in lower monthly costs?
- Will the savings be enough to pay the refinance costs within 3 years?
- Will you own the property long enough to recapture the refinancing costs?
- Do you want to restructure your loan?
- Would you like to eliminate mortgage insurance?
- Would you like to make renovations on your home?
If you answered yes to any of these questions, now could be a great time to consider a refinance! Interest rates have continued to drop piquing the interest of homeowners everywhere. To see how a refinance could benefit your financial situation, be sure to contact your local mortgage banker because every deal is different.
Can I refinance during social distancing?
Yes! With the use of BankSouth Mortgage’s ReadyLoan app, you can apply, securely upload and sign documents for your mortgage banker without seeing each other in person. In addition, there are additional options for closings. During the state of emergency, the state is allowing alternative types of real estate closings such as secured video closings and parking lot closings. In some cases, in-office closings are still occurring, with proper social distancing measures put in place for everyone’s safety.
Considering a refinance? Download our ReadyLoan app today to calculate an estimated amount for your new mortgage payment. You can even apply right from your mobile device!