Refinancing your mortgage, especially in order to get a lower rate, comes with the obvious benefit of saving money each month. However, with health and economic concerns mounting, it’s smart to consider your personal situation to make sure refinancing is a good idea right now — for both your application but also your own peace of mind.
Job Stability. A lot of industries are impacted by social distancing guidelines right now, shuttering businesses that involve large congregations of people or non-essential work that can’t be performed virtually. Even if your work hasn’t been impacted yet, think long and hard about how stable your company (and position) feels.
Credit Score. While lending standards haven’t technically changed for minimum mortgage requirements, some lenders are implementing their own stricter standards to vet applications. HousingWire reported that many FHA lenders, for example, have increased the minimum credit score from 580 to 660. If you’re considering a refinance on your home, ask lenders about any changes in credit score requirements to make sure you’re still eligible.
Health. Money isn’t the only factor to consider when refinancing during COVID-19. You also need to think about your health. While refinancing definitely takes less interaction compared to selling your house, you still need to have an appraiser come into your home and meet with a notary to sign your new closing. If you’re in a high-risk group for contracting COVID-19, you might consider holding off on your refinance application until the risk for infection has lowered.