Mortgage Questions During Covid-19
While the last couple of weeks have been difficult there have also been silver linings. So many special moments that would have never surfaced without the gift of time. Whether it is a walk through a special neighborhood which brings back all of the feelings or a conversation with a certain 8th grader regarding the power of music, it was the gift of time that allowed the special moments to shine through the clouds. I have challenged myself to stay grateful within the moments and reach out to those I hold dear. I am grateful I have a family to love, friends to lean on and miss, and two careers to keep my passion alive and always reaching for more.
All of this time at home may have you reevaluating your current living situation. Are you ready to move to a bigger space? Are you tired of paying rent? Is it time to downsize because now that you are home you realize how little of your home you actually live in? Due to the pandemic that has turned our lives upside down I had the opportunity to gain some insight from my favorite mortgage expert, Manley Haines. Before I even go any further I want to tell you that if you have questions around a mortgage or refinancing, Manley is your guy! His information is located at the bottom of this post.
Here are some questions that I thought you would like to know the answers to. I think I have realized through all of this is that life doesn't have to stop and you do not need to stop dreaming or living. Plan for what you want or need. Find the people who can make it all possible! If you want someone to guide you towards your housing needs call me!
I will be here to welcome you home!
What is the impact the covid-19 has had on the interest rate for mortgages?
- Covid -19 has had many effects on the mortgage industry because of the overall financial impact to US in general. It started with the fall of the Stock Market and then the fall of the Bond Market which turned mortgage interest rates on end. We had been in a very low interest rate environment that jumped up a full percentage point right away but has since worked its way back down. The massive layoffs that are predicted by this and that are already occurring is having a significant impact right now. This is going to and has stopped some loans from closing because the buyer is no longer employed/laid off just prior to closing. This is creating many issues from lending and getting people qualified. Until we get the markets to stabilize we will continue to have market movement and change of product availability. No Crystal Ball but this should correct itself shortly after the COVID – 19 crisis in over. Hoping by June 2020.
What do you predict will happen with the interest rates in the future?
- I do not have a crystal ball but I feel like when the economy recovers from this we should have low rates for some time.
What advice do you have for a first time home buyer right now?
- Make sure you have your ducks in a row and get a strong pre-approval from reputable company. Really rely on a good referral from your amazing real estate agent to guide you through the process of picking a good lender.
What advice do you have a for a home buyer who is looking to sell and purchase a new home right now?
- Make sure talk with your lender and make sure you understand your what you are pre-approved for and also talk with your realtor to understand what your Net Proceeds will be after your sale is complete
Can you still lock in a rate for 90 days?
- Yes we can lock for 90 days, it is usually a .125% addition to the rate.
What else do you think people need to know about financing a home they may not know?
- Make sure you give yourself the advantage of good mortgage consultant so that person can give sound advice on what products are available to you.
Manley Haines
NMLS: 755847
Mortgage Consultant
Prosperity Home Mortgage, LLC | 2750 Golf Road STE A | Delafield, WI 53018
Cell Phone (262) 391-8844
Fax (844)378-0845
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