Amidst fear and concern over the novel coronavirus, or COVID-19 and the concurrent economic situation, homeowners have begun scrambling to refinance their home loans. WE have seen many lenders experiencing back-ups as the mortgage industry has been overloaded with frantic people looking for financial relief during these uncertain times.
Why Consider Refinancing?
The reduction in the Fed rate, coupled with the possibility of taking cash out for those who had sufficient equity in their homes, caused many homeowners to see refinancing their Florida home as a way to establish some financial stability during an otherwise vulnerable time.
Volatile Rates at Volatile Times
Unfortunately, even as Treasury yields remained low, the 30-year fixed mortgage rate eased up and ended up at its highest level since mid-January just last week according to the Mortgage Bankers Association. They are hoping that with the continued efforts by the Federal Reserve to restore stability that mortgage rates may feel some downward pressure, allowing more owners the ability to refinance their existing loans.
Diligently Working to Meet Borrowers’ Needs
Today, many Florida mortgage brokers have been working diligently to meet the needs of homeowners wanting to find some financial relief through refinancing. The sheer volume and the added shut down of non-essential businesses, has complicated matters.
For those homeowners who are considering a refinance in Florida, it’s important to understand that lenders are taking a hard look at borrowers’ approval criteria. Particularly when people are facing layoffs and furloughs, lenders need to be assured that borrowers are not credit risks. Consequently, for those who find themselves temporarily unemployed, the prospect of refinancing may remain dim for now.
Lenders Turning Away Borrowers.
The situation has had a domino effect on appraisers, title companies and other mortgage-related businesses finding themselves trying to keep up. Consequently, the refinancing influx has led to some lenders turning away applicants. Being approved for a loan today may take a bit longer but the wait may be to the borrower’s benefit if rates do drop.
Florida Mortgage Brokers Have Many Lending Resources
With large institutions trying to play catch-up to deal with an influx of refinance applications, it pays to work with a professional Florida mortgage broker. A mortgage broker will have access to many different lenders and can weed out those that don’t fit with a borrower’s financial or property profile.
If you are considering refinancing your mortgage in Florida in these unprecedented times, we would be glad to help. At Florida State Mortgage Group, we serve borrowers in Ft. Lauderdale and throughout the state of Florida and strive to help our clients get the mortgage services they need and deserve. We would welcome the chance to work with you during these challenging times, call us today at (954) 359-3000.