Is it a Good Time to Refinance During COVID-19?

With so much about the world different than it was just a couple of short months ago, refinancing may seem like the furthest thing from your mind. Why would you possibly want to add that headache onto these uncertain times? Why would you put yourself through all that paperwork, needlessly, again?

For starters, refinancing doesn’t have to be a headache. There are tools and resources designed to make the process efficient and streamlined for homeowners. Depending on your situation, it may only take a few weeks. And, tasks like signing documents are much easier in today’s digital world.

So, why consider refinance?

Well, there are a few great reasons to refinance. For example, depending on your situation, you could get cash out of your home and lower your monthly payment. Or you could just end up with a smaller monthly payment due to a lower interest rate. Bottom line: it comes down to your personal situation. But, here are 5 things refinancing could mean for you:

1. Get cash out of your home to consolidate debt

Depending on your home equity situation, you could get cash out of your home to pay off your other debts like car loans, student loans, or even credit card debt. The advantage of this is only having one payment for your debts, plus the interest rate on your refinanced mortgage will likely be lower than the interest rate on your other forms of debt.

2. Get cash out of your home for home improvement projects

How long have you been promising yourself you’d have new cabinets installed in your kitchen? How long have you been looking at a bathroom you absolutely hate? Is it time to finally replace the windows? Need a new roof? No matter your home improvement projects, getting cash out of your home through a refinance could be the opportunity to finally cross those projects off your list.

3. Lower interest rate

One of the absolute biggest advantages of refinancing is locking in a lower interest rate. Why is this such a huge deal? Because it means you’ll most likely end up paying less interest over the life of your loan. Depending on your current and new loan terms, you could save thousands of dollars doing this.

4. Lower monthly payment

Wouldn’t it be great to put extra money into a savings account every month? Or redirect some of your income to other debts? No matter your monthly goals, refinancing could lead to a lower monthly payment. And, a lower monthly payment means more money to accomplish other goals.

5. Eliminate PMI

Some loan programs, depending on your down payment, require Private Mortgage Insurance, commonly referred to as PMI. This is a fee added onto your monthly mortgage payment and required until you pay off a certain amount of your loan. However, refinancing could mean the elimination of this fee, which saves you every month.

Why is it a good time to refinance now

If the above benefits are always available, then why is refinancing such a big deal right now? There are several factors that play into the benefits and the reasons of “why now?”, but perhaps the biggest thing is the ease of the process.

There are tools and resources available now that haven’t been readily available in the past. When you combine that with current market rates, which are constantly fluctuating, and the extra time at home everyone has, then you have a formula ideal for refinancing.

Refinance faster with Mortgage Express

Mortgage Express, our mobile app, is designed to streamline the process and eliminate barriers for both homebuyers and homeowners. The refinancing process, other than closing, is built right into the application. Which means, you can apply for your refinance and manage the process without having to leave your home (or your couch).

Start the process

Whether you choose to download the app or use the web portal to manage the application process, getting started is easy. You’ll click the refinance option and answer a few questions like age, current loan information, and other standard information needed to kick start the process.

Upload documents

You can scan documents to your computer and upload them through the online portal. Or, you can use the camera on your phone and securely upload them using the Mortgage Express app. There’s a crop and auto-zoom feature that makes this part of the process a breeze.

Contact your Mortgage Consultant

Worried you’ll have questions? Not sure which document needs to be uploaded? You can reach out directly to your Mortgage Consultant through the app. Call, text, or email are all available options.

Calculate different loan scenarios

Want to know how much you can get out of your home? Want to see what happens if you pay for closing costs instead of rolling them into the new loan? Mortgage Express gives you the control needed to learn information on your own or through your Mortgage Consultant.

Real time milestones

With Mortgage Express, you don’t have to worry about the status of your loan. Why? Because the app has a built-in timeline that keeps you updated in real-time. You’ll also receive text messages and email notifications when documents are needed or when you’re ready for the next step.

If you’ve been thinking about refinancing your current mortgage or want to know what options are available to you, then don’t wait.

Rates are constantly changing and your options change with them. Reach out to a qualified Mortgage Consultant today to learn more.