Seattle Mortgage Company Shares Insights for Refinancing Your Mortgage
While COVID-19 is endangering millions, its economic fallout will reach even further than its direct health effects.
Even if neither you nor anyone you know has contracted the coronavirus, it may have already impacted you financially.
Many people are experiencing cuts to their hours or pay, or are being furloughed or laid off entirely. And if you do end up with unexpected medical bills as a result of the virus, you may find yourself struggling even more.
If you are having a hard time keeping up with your bills, you might consider refinancing your home loan.
While refinancing does carry costs, the savings and other benefits may far outweigh those costs depending on your financial scenario.
Tips on Refinancing Your Mortgage
The following are a few possible ways that refinancing your mortgage in Seattle may help you stay afloat during and after COVID-19.
- Cut back on your monthly bills to adjust to a lower income.
One of the primary ways in which you may be able to cope with a drop of income with the help of a refinance is to lengthen the term of your loan.
Doing so will reduce the amount that you need to pay each month. The reduction in your interest rate will further reduce this amount.
With less money going toward your mortgage, you should then have more financial resources available to keep up with the rest of your bills.
This makes it less likely that you will fall behind on those bills or on your mortgage.
Further, it can be a huge weight off psychologically knowing that you do not need to make as much money to keep up each month.
The drawdown on your savings will also slow down in the meanwhile if you are between jobs or under-employed.
- Get a cash-out loan if you need to borrow money.
If you have a sudden large medical bill or another emergency expense, you may be able to get the money you need to pay for it with a cash-out refinance.
While this does entail eating into your home equity, it may cost you less than putting it on your credit card or taking out a high-interest loan.
- Make life more predictable with a fixed-rate mortgage.
We are living in unpredictable times. It can be hard to know what tomorrow will bring, much less next month or next year.
So, when you can remove some unpredictability from your life, it can go a long way toward improving stability and reducing anxiety.
One way you can do that is by switching your adjustable-rate mortgage to a fixed-rate mortgage through refinancing.
Since rates are so low right now, you could not pick a better time to lock in a fixed rate for the future.
- Consolidate your debts.
If keeping up with your other debts is making it difficult to get by right now, refinancing could be your key to gaining more financial control over your life.
When you refinance, you may be able to consolidate some of your other debts under the umbrella of your mortgage.
If those debts had high-interest rates, they won’t any longer, because they will carry the same interest rate as your new mortgage.
This will make them more affordable, giving you a better chance of catching up and staying current on all of your doubts.
- Lock in low mortgage rates for the duration of your loan.
As mentioned before, a fixed-rate mortgage can bring more predictability into your life.
But whether you go with a fixed-rate mortgage or an adjustable-rate mortgage when you refinance, this is your chance to lock in lower interest rates.
Adjustable interest rates can increase, but only after an introductory period featuring a low fixed rate. For this reason, they are most suitable if you will only be in your home for a few more years.
So long as you choose the type of mortgage rate format which is appropriate for your needs, you can look forward to not just saving money now, but saving money for as long as you are in your home.
Blue Square Mortgage Can Help You Refinance Your Mortgage in Washington State
Now you know some of the ways that refinancing your mortgage in Seattle or elsewhere in WA could help you to weather the financial challenges of COVID-19.
To apply now, call Blue Square Mortgage today at (206)352-6453. During your consultation, they can provide you with personalized refinancing recommendations based on your needs.