The damage of the coronavirus pandemic to the global economy affects numerous sectors to this day. Although stock prices are slowly stabilizing, that doesn’t mean that everything is back to the status quo. Part of the healthcare crisis’s effects is the drop-in mortgage rates.
Mortgage rates are dropping to record lows due to the COVID-19 pandemic, which gives first-time homebuyers an advantage to grab a bargain in the real estate market. Thankfully, current homeowners can join the trend of getting low loan rates by refinancing their mortgage.
Taking Advantage of Low Mortgage Rates
If you’re still waiting for mortgage rates to get any lower, you shouldn’t expect it to do so anymore. Ever since its rating of an all-time low of 3.09% average back in September 2020, the economy is now finally rebounding from the pandemic’s effects. The possibility of rates falling below 2.5% or lower is no longer insight, which is why you should consider refinancing your mortgage as soon as you can.
Before you consider refinancing your mortgage, here are three things you should know:
- Refinancing won’t reset your loan’s remaining years. If you’re already several years in your 15- or 30-year mortgage, you might have some doubts about adjusting your current mortgage terms. Thankfully, refinancing your mortgage doesn’t strictly require you to reset your mortgage. For most modern lenders, you can acquire custom loans that will give you the option of taking out a 25-year loan. This wouldn’t reset your year but will instead give you a lower rate for the remaining years of debt. Since mortgage companies are still slowly recovering from the pandemic, you may shop around for a shorter-term loan that’s affordable enough for your current financial situation. This allows you to be debt-free sooner with lower rates.
- You can apply for a mortgage refinance 6 months after your last home loan swap. For people who went through a mortgage refinance in the past, you can still swap out your loan as long as it’s been 6 months since your new loan took effect. Remember that refinancing several times throughout your mortgage’s term will require you to pay mandatory closing costs. This is why you should only refinance when you have better financing options available. Additionally, your current credit score will still be an essential factor in the potential loan rates you can apply for.
- You can negotiate your closing costs. Moving from one mortgage plan to another will require you to pay off your closing costs before your new loan takes effect. Although this is mandatory for refinancing your mortgage, there are payments that you can negotiate with your current provider. Some expenses, like recording fees, are non-negotiable if it’s set by the state or local government. On the other hand, you can handle terms set by your mortgage lenders, like origination and application fees. Keep these consequences in mind when you’re considering your available lender options.
Refinance with Shannon Christenot in Los Angeles
This year's effects aren’t all negative for all sectors. Although the real estate and travel industry are enduring a slow climb back to stability, the projection of a significant comeback isn’t too far off into the future. This is why investors are slowly eyeing the market changes to project the right timing of gaining back their losses due to the coronavirus pandemic.
Looking for a reliable mortgage expert will help you find the best loans that fit your current financial capacities. If you’re still looking for the best mortgage company in Los Angeles, I’m happy to connect you with the right lenders. Contact me today at (818) 601-2231, and I’ll help find the best lender for your financing needs!