The coronavirus pandemic has shaken the nation’s economy. Florida, a state that thrives on its tourism segment, has been hit especially hard. This, coupled with the fact businesses had to lay off tens of thousands of workers in March, have led consumers to have the lowest level of confidence in almost six years.
These realities have left homeowners who still owe money on their mortgages in a tricky situation. Paying off a loan may be contingent on a job, and that job may now be at risk. Even if the job is not at risk, current low mortgage rates may make it tempting to refinance. Whether or not refinancing is the right economic choice will depend on many different factors that can vary for each homeowner. However, some basic considerations to begin the thought process include:
- The length of the loan. If you are almost done with your loan, it is likely best to keep it as is. If, however, you have a long period of time and a large balance left on your loan, refinancing may be a good option.
- The available options. Look into the terms and rates that are available. Gather these numbers and calculate how much it would cost.
- Refinancing cost. Next, add in the expenses that come with refinancing. Refinancing comes with closing costs, just like when you bought the home in the first place. If you are seriously considering refinancing, ask the lender to provide a breakdown of these expenses.
It is important to note that this is just one option available to those who are struggling to make their mortgage payments. An attorney experienced in real estate law in Florida can discuss the impact of this and other options, better ensuring you make the right decision for your future financial security.
