How will the coronavirus affect mortgage rates and ultimately your ability to afford a house? Find out today.
As you know, the coronavirus has had quite an impact on the stock market, and in turn, we’ve seen interest rates take a huge drop. Over the last two or three days (as of this recording), rates have fallen significantly. Before the outbreak of the virus, rates were already as low as they’d ever been, but now they’re even lower.
This is great for many homebuyers, who will see increased buying power and lower monthly payments because of it. If you’re thinking about moving up, for example, now is the time. You could also take advantage of the times by taking cash out of your home; home values have increased significantly lately. Or, if you have mortgage insurance and you want to refinance, doing so now can reduce your rate and get rid of your PMI.
If the coronavirus sticks around for a while, what’s the outlook for the market?
If the virus is short-lived and able to be contained, we’ll be able to enjoy these low rates for a bit longer. If there is a large outbreak, however, that could have a negative impact on the housing market. Since we’re not sure what the future will look like, Michelle recommends taking advantage of the low rates by buying or refinancing now.
Speaking of refinancing, if you’ve bought a home in the last four or five years, I recommend giving Michelle a call. She can help you determine whether refinancing your home to save money each month makes sense given your situation. The lowest credit rating she can work with is 580 for an FHA loan, 600 for a VA loan, 620 for conventional, and 640 for USDA loans. The higher your credit score, the better interest rates for which you’ll qualify.
If you have any questions about lending, contact Michelle at (919) 796-3097 or visit www.MichelleLendsMoney.com. For your other real estate questions, don’t hesitate to reach out to the Boykin Realty Associations. We’d love to hear from you.