I think I speak for just about everyone in the world when I say I’m feeling anxious. I’m anxious to get back to work so we can get back to life, don’t care if I have to wear a mask. I too have been affected by the pandemic, i have family who are unemployed, including my grown children, my siblings and many others. We’re part of the massive 40 million people that are currently furloughed or unemployed.
That’s good reason to be anxious, not just for me and my family, and my employees that I have been able to keep on the books because of the paycheck protection program. I’m also anxious because everything is teetering on the edge because of this unprecedented time and issue. Team with the unemployment levels the damage to business and the economy being in the tank and anxious is to be expected.
Not all the news is negative though, as we’re beginnng to see a “re-start” of some businesses as the restrictions for coronavirus start to lift. For instance, the refi loan market is unbelievable and the rates are still very low, hovering at 3% (as of 5/25/20). Wow! Of course, that rate will fluctuate from lender to lender so do your homework. Also, the 15 year fixed loan is a steal at these prices. When compared to two years ago, your monthly mortgage price at today’s rates (2.74% average) for a 15 might be close if not the same as your 30 from a couple of years ago. That’s definitely worth consideration.
Okay, conforming loans are for amounts set by your particular county. And conforming loans are being written by all lenders if you are employed and can verify income. Once you go over the conforming rate, you find yourself in jumbo loan territory. This is a loan that the government doesn’t back, not Freddie, Fanny or Ginnie here, somebody has to buy these loans, mainly mortgage bankers. These loans are starting to come back into the market since the beginning of the pandemic. Again, you must be employed with verifiable income to qualify for most any loan, especially for jumbo products.
Non QM loans are also gradually coming back, these types of loans are specifically for people that are self-employed and need to verify income with bank statements. However you go, this is a perfect time for a loan if you are employed.
We’ve looked into the latest information about forbearance. If you have taken forbearance and are now currently paying your mortgage payment, but used the forbearance during the pandemic, some lenders will let you refi with three consecutive mortgage payments so your loan gets reinstated, and considered for refinancing.
After taking the forbearance, you can postpone the balance, to the end of the loan, you can also pay up the forbearance balance, or you can refinance the balance. Remember though that you will need to make 3 consecutive monthly payments to be considered.
Lots to be anxious about, but we are hoping things will start to settle in the coming weeks.