JACKSONVILLE, Fla. – Amid growing concern over the coronavirus, world markets have tumbled and so have some prices. We’ve already started seeing cheaper gas at pumps around Northeast Florida.
Another benefit -- lower interest rates. They could lock in substantial savings for you on your home.
Following the World Health Organization’s announcement that coronavirus is now pandemic, the New York Stock Exchange saw a final bell with losses pushing into Bear Market territory.
Titus Pittman, a certified financial planner with Genesis Financial Partners, said one of the opportunities for consumers can be adjusting their home loans to take advantage of lower rates.
People who are considering purchasing a home may be in the same good place as those who already own and want to refinance. Interests rates have declined as the Wall Street roller coaster continues through its third week.
“This creates tremendous opportunity for the consumer to refinance their loans and actually pay less than they were paying on their current loans. Mortgage refinance applications as of today is up over 70%, so it’s a great opportunity for those looking to refinance their home or even purchase a home equity loan,” Pittman said.
Insight Wealth Group found quotes on a 30-year mortgage at 3%, while a 15-year mortgage was at 2.5%. They’re the lowest rates they’ve seen in a long time.
While the low interest rates remind people of 2008 and the recession, Pittman said there should be a big difference.
“It’s important for everyone to know that this is not a financial crisis,” Pittman said. “Banks are well-capitalized, so it’s not like 2008. This is a health emergency crisis. Parents, with that said, consumers shouldn’t be afraid of the risks associated with that portion we saw in 2008.”
Refinancing your mortgage is not right for everyone, and bankers or financial planners would want to talk through details with you before you make that decision.