- 07 April, 2020
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Coronavirus Housing News & You
Despite Fed intervention, mortgage rates have not yet dropped to the low levels they reached before the pandemic struck. The Fed’s activity has significantly increased the cost of insuring rate locks and pushed mortgage rates higher as an unintended result.
“RONs,” Remote Online Notarizations, have received support from Fannie Mae and Freddie Mac. Stay-at-home closings are not yet available everywhere because the format often requires state and local government approval.
Misleading headlines are causing lenders to be overwhelmed with requests to take advantage of postponed payments, AKA mortgage forbearance. In fact, forbearance is intended ONLY for those who have a direct financial hardship due to the pandemic AND who have a government backed loan. If you can still make your payments, please continue to do so. You’ll keep the phone clear and the assistance flowing for those who truly need it.
Housing and Home Financing:
In some areas, lockdown orders have prevented the usual inspection process for purchasing a home. If you are concerned you will be affected, please talk with us and/or your agent.
Do you have a HELOC (Home Equity Line of Credit)? If you don’t plan to sell or refinance anytime soon, it might be prudent to draw from it now to create a cash cushion in case of lost income. Banks have been known to curtail credit lines in tough economic times, so access the cash now. If you don’t use it, you can always pay it back when things settle to avoid further interest expense.
If you are in the process of purchasing or refinancing, it’s possible and even likely your employment will be re-verified just prior to closing. If you have any actual or expected income changes, please let us know right away.
Remember, we are here and still working hard for you. Please reach out whenever you have questions or need assistance. Stay well!