Home Refinancing
With the interest rates reaching an all-time low, refinancing your mortgage during COVID-19 might help you stay away from your retirement funds and even save money long-term. And mortgage rates could plummet even further. “Watching the mortgage market right now is like creating a new reality show called ‘Unintended Consequences … COVID-19 Edition,’” said mortgage expert Amy Swaney, of Citywide Home Loans in Phoenix.
If you manage to reduce your monthly mortgage payments by a few hundred dollars, you might be able to cover other expenses such as bills or transfer the extra money into an emergency fund. “My advice would be to strike while the iron is hot and capture the savings with lower rates,” said Scottsdale HomeSmart real estate agent and economic data tracker John Wake. In the long term, you could build a pretty neat nest egg without accessing your 401(k) money.
