Ways Homeowners are Looking to Stabilize Finances in Abnormal Times
As the state of California has been sheltered in place for a significant amount of time many people are beginning to wonder what life will look like when restrictions are lifted and we are allowed to go back to “normal.” What will normal look like? It will certainly be different than it was before. While there are many speculations and predictions about how things will be impacted and how they will need to change and operate to recover from this pandemic, there really is no way of predicting what life is going to be like.
While people are at home and contemplating many things, especially the state of our economy and its future, some begin to wonder “how can I take a look into my personal finances and maybe make some changes to help us over the coming months or even years?”
A large number of homeowners are now looking to refinance their homes, even homeowners that previously were not attracted to saving just $100 to $350 dollars a month on their mortgage payments. People are facing hardships such as reduced work hours, being asked to take voluntary salary cuts so the company can keep more employees in jobs, one or both heads of household losing a job, etc. Facing these factors any savings at all is currently helpful and take on a weight of importance they didn’t before. When the economy was well and seemed to be doing better every day the advice you may have heard from finance experts was to only refinance if you planned on staying in your property long term, not because you were looking for short term benefits and payouts. Now that advice looks a little different.
Some money-savvy homeowners may look into taking out a home equity line of credit (HELOC). What is a home equity line of credit? A HELOC is a revolving credit line (money available to you for borrowing) that uses your home equity ( the amount it has appreciated in value)as collateral against default. It is like a credit card you use when you need to that has a variable interest rate.
During this time there is much uncertainty, but one thing that is certain this whole situation has brought about unfamiliar situations for everyone and things that used to be hard and fast rules no longer apply to current situations.
If you are searching for solutions on saving money on your mortgage payments or the possibility of a HELOC, please contact me anytime. Let me help you find the best mortgage in California for your financial needs.