To Refinance or Not? Refinancing Mortgage Loans During a Pandemic

house keys and mortgage contract

Since the coronavirus plague spread all over the world, a lot of people’s lives have been upended and interrupted, especially when it came to health and finance. Not one person on Earth could say they were not negatively affected by the pandemic.

It doesn’t matter if you’re the CEO of a multinational company, an Uber accident lawyer, a commercial roofing installer, or a nursing aide, one way or another, you felt the adverse effect that COVID-19 has brought.

Due to loss of income, a lot of folks are now considering refinancing their loans. But is it really a good time to have your mortgage refinanced?

Is Refinancing Mortgage Wise at this Time?

There’s actually no right or wrong answer to this question at this time. It is understandable why people would consider refinancing their mortgages, considering the instability of the economy and the lack of job security, a lot of people are looking for different ways to mitigate the financial impact of the pandemic.

Fact: Rates are at a historic low right now so if you’re thinking about refinancing your mortgage, now is a good time to do so. However, you must still exercise caution because along with historically low rates are fluctuating like crazy. Add to that the anxiety about contracting the disease and loss of income sources, the process can be quite tedious and vexing.

But that’s not to say that it isn’t possible. Some homeowners have successfully refinanced their mortgages despite the present conditions and challenges the coronavirus brings. We have managed to ask some of them for a few tips on how to go about it.

4 Tips to Mortgage Refinancing during a Pandemic

  1. Look for the best lenders and rates.

Given the present situation, rates are bouncing up and down all over the place now. While rates are low, factors like the number of applications and federal fund rates are causing rates to fluctuate.

Reach out to several lenders and ask them about the different rates that they have to offer. A lot of these lenders are willing to work with you. You just need to be transparent about your situation and tell them where you’re at financially.

couple talking to a real estate agent

  1. Look for them using various methods.

Under normal circumstances, you would look at mortgage rates on comparison sites. However, if you only resort to that, you might miss out on some of the best deals that are more suitable for you.

A lot of financial institutions have left these comparison sites so don’t be surprised if you don’t see some names you’re looking for. That doesn’t mean, however, that they’re no longer in business. Give them a call and you might actually find some reasonable rates.

Don’t stop at the most convenient method. Exhaust all possible means of getting a good deal.

  1. Ask about fees.

It’s important to know that just because the rates are low doesn’t mean it’s the best deal on the market. Some companies offer very low rates but make up for it in additional charges and fees out-of-pocket. The only way you can know is if you ask them upfront about an itemized list of fees so you have an idea how much you’re going to spend if you decide to go with them.

  1. Don’t push through when you’re not comfortable with the deal.

Whether you’re worried about contracting the virus with an in-person signing or part of the deal doesn’t sit well with you, don’t be afraid to say no. You have every right to do so. If your health will be put at risk or if you sense something shady about the whole thing, take your business elsewhere.

When it comes to refinancing, you need to ensure that you have the best possible deals so that it doesn’t become an unnecessary burden to you, especially at this time. Your goal in refinancing your mortgage is to help you cope financially.

If refinancing won’t help you meet that goal, then perhaps it’s not the right thing to do in your situation. Either way, you need to make a wise and well-informed decision regarding this matter. Reach out to a finance expert so you can make the right choices.

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