Since the beginning of the COVID-19 global health pandemic, government officials, economic experts, and United States citizens have watched the housing market with close scrutiny.
Still shaken by the 2008 recession, many homeowners are worried about being unable to afford their home loan. Homeowners, real estate investors, and first-time buyers are confused about where to stand and how to proceed (or whether to proceed at all).
Read on to discover what COVID-19 could mean for your current - or future - mortgage loan and home purchase.
After a spike in COVID-19 cases in March 2020, the Fed strived to offset an economic crisis by purchasing a surplus of mortgage bonds through a method called "quantitative easing." This emergency policy aims to ease the financial burden on lenders so they provide more loans to consumers.
Since March 2020, mortgage rates have continued to drop. During a time of economic upheaval (like a global health crisis), measures by the Fed to drop interest rates have the potential to seriously offset further damage to the economy.
But what does the novel coronavirus mean for your mortgage loan - or the loan you’d like to get?
Mortgage rates are low right now - and that means more cost-effective loans!
One of the best ways you can help solidify the prospect of purchasing a new home is to attain a pre-approval letter from your lender. This way, the seller is reassured you will follow through with purchasing the home and you can snag your dream home faster.
If you’ve lost your job or are experiencing significant financial burden due to the novel coronavirus outbreak, your mortgage will likely be government-backed.
There are temporary relief options arising from government agencies and lenders across the country. For example, your lender can’t foreclose on you for missed payments until August 31st, 2020. Also, you may request a forbearance plan if you have experienced recent financial hardship, like getting laid off. Forbearance could mean either suspended or reduced monthly mortgage payments
Be aware, however, that forbearance does not mean loan forgiveness. Forbearance requires repayment, which could come in the form of adding the overdue amount to your monthly payment until you're caught up or requiring repayment in one lump sum.
Sometimes refinancing your home is a better option for the long term than receiving loan modifications.
If you’re a homeowner looking to refinance your home, you’re likely seeking to change your fluctuating mortgage rate to a fixed-rate mortgage rate. However, note that refinancing is beneficial for all homeowners, whether you have a fixed-rate or variable-rate mortgage.
Depending on your financial situation, credit score, and other factors, now could be the right time to refinance your home.
2020 may be the perfect time for you to purchase a new home or refinance. If you’re interested in learning more, contact us today!
Proudly serving current and future homeowners in California and Arizona. We are a wholesale broker that partners with the top Lenders in the nation, passing the savings on to you!
Company NMLS: 1712689
8700 E Vista Bonita Dr #260
Scottsdale, AZ 85255
Phone: (800) 874-1233
Crest Mortgage, Inc. strives to ensure that its services are accessible to people with disabilities. Crest Mortgage, Inc. has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Crest Mortgage, Inc. makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows www.CrestLendingGroup.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
The Crest Mortgage, Inc. accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Crest Mortgage, Inc. continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Crest Mortgage, Inc. website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Crest Mortgage, Inc. website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: Info@CrestLendingGroup.com