COVID-19’s Impact and Available Resources in Washington
The impact of COVID-19 has upended lives all over the world. You may think that because of everything going on in the world, you have to cancel or delay your dream of buying a home in Washington. Fortunately, this is not the case. Amidst the changes that COVID-19 has forced us to implement, now is still a great time to purchase, sell, refinance, and take care of other mortgage and personal loan requests. During this time, it is important to utilize the many new and previously available resources for your mortgage needs and questions. And above all, Element Mortgage is here to help you now more than ever before.
The Impact of Coronavirus
Studies have shown that real estate agents are seeing a sudden decrease in homes being purchased and sold due to Coronavirus. However, with lower-than-average mortgage rates and a broader market, motivated buyers in Washington are seeing more opportunities and less competition in the housing market than before. Keep in mind that when quarantine ends and social distancing measures are lifted, we are likely to see a boom in home shoppers and housing sales. When things shift back to normal, this pent-up demand could potentially push home prices higher and limit your options. For most people, that means now is a great time to consider buying, selling, or refinancing your mortgage loan. Continue reading to learn the impact of COVID-19 in several different areas of the mortgage industry.
Buying and Selling Homes
As we mentioned, COVID-19 is impacting buyers and sellers all over the world. There has been a decrease in activity in both the buyers and sellers markets. However, if you are a motivated buyer, this could be a great opportunity for you to get the home of your dreams while receiving an awesome mortgage rate. When you combine the historically low rates and new programs and resources available during this time, you have several factors that will help you to either buy a home. Recession or not, the only bad time to purchase a house is when you buy beyond your financial means. Be knowledgable about your current financial situation, look into getting pre-qualified or pre-approved, and you’ll know how much home you can afford.
For sellers, the limited housing inventory works in your favor. This reason for this is that you have less sales competition in your area. Keep in mind, it is likely that all of your motivated shoppers will be viewing your home virtually. Knowing this, go above and beyond to create an above-par experience for them. It is crucial to have outstanding photos of your home available on your listing and to even consider providing a virtual tour. A virtual tour can create a level of trust, clarification, and can help a buyer to know and understand the space better.
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Current Mortgage Rates
You may have heard that in Washington, we have had a drastic shift in mortgage loan rates. In fact, mortgage rates recently plummeted to their lowest level in nearly 50 years. This is due to the face that the Federal Reserve has taken multiple opportunities to keep money flowing through the mortgage financing system. One step they took included two interest rate cuts in the month of March.
These rate cuts from March 3 and March 15 are good for those with or shopping for adjustable-rate mortgages and HELOCs since they are guided by Federal rate movements. Overall, adjustable-rate mortgages will likely see lower rates at their next reset period. And HELOC rates are averaging about 1.25 percentage points lower in mid-April than in mid-February.
Refinancing Your Loan
Due to current rates and unstable financial situations, tons of people are taking advantage of the current mortgage rates to refinance their home loans. And now is a great time to do so. There are several reasons you may choose now as the time to refinance your loan. You may be looking to get a lower monthly payment, to shorten the length of the loan, switch out your adjustable-rate mortgage with a low fixed-rate loan, to borrow more than you owe in a cash-out refinance or to eliminate FHA mortgage insurance.
Our loan officers will be there to guide you through every step of the refinancing process. From what choosing which type of loan is best for you to lock in your rate. But don’t wait! As more people refinance, rates are expected to start increasing. So, if you are looking to save some money and lower your rates, reach out to us today.
Loan Pre-Approvals
If you’re in the market to purchase a new home or are looking to upgrade or downgrade your space, take advantage of getting preapproved. During this time, showing sellers that you’ve been preapproved is a great way to prove to them that you’re motivated and that the sale is not likely to fall through. With a smaller inventory of houses creating a more competitive market, this can give you the edge you need to become their top buyer. Keep reading, we have a list of resources and programs available in Washington below.
Resources in Washington
During the COVID-19 crisis, things may feel uncertain or scary. Many people are left with reduced income or even unemployment. Due to this, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act, which partly guides lenders to provide mortgage relief options to affected homeowners.
Fortunately, there are several resources available at our fingertips. Some individual lending companies and Washington governments are also taking independent action to provide mortgage relief to homeowners.
Whether you are seeking information, worried about making your next mortgage payment, or are looking for business financial assistance, there are likely resources available in Washington that will be beneficial for you.
- Forbearance through your mortgage servicer.
- Washington’s official COVID-19 website.
- Local resources for food and housing.
- Unemployment and personal finance help.
- Federal Finance Housing Agency (FFHA)
The Element Mortgage Difference
Whether you are looking for a fixed rate, adjustable rate, FHA, or VA loan, Element Mortgage is here to help you. Not sure which loan would suit you best? That is what we are here for. Here are Element Mortgage, we are Unlocking the Human Element in a Digital World! You will work with real people and will receive personalized attention as a result. You are our number one priority. It is our mission to be your go-to resource for all things mortgage and real estate related. No matter if this is your first home, or if you have a large portfolio; we are the experts you want to work with.
During this time of uncertainty, you can count on us to help you with your mortgage loan needs. We are operating under normal business hours, and our loan officers are offering consultations over video calls. Contact us today to learn more.