COVID-19 has caused housing prices to skyrocket in some areas. Due to low interest rates, high demand, and short supply, the market has become a seller’s market. The increase in demand has come from the transition to remote work—as people realized they could move to any place they want and still keep their job, demand for housing in specific areas shot up. While this has made it beneficial for specific sellers, it has also hurt some homeowners. Driving up prices in a particular location can cause rent or mortgages to go up, which in turn can force people to relocate or get evicted. Other homeowners struggled to make mortgage payments due to job loss or business closures, which caused other financial problems, such as loan defaulting.
Those in California who have never missed a home payment, however, could be in for a big break. The Biden administration, as well as several mortgage lenders, have been providing financial relief for people who can’t afford housing. These same relief programs also include rewards for paying homeowners. Many of these mortgage lenders offer better refinancing deals to Californians, such as a Federal Housing Administration-backed loan that covers up to 97% of the value of the home. This can be extremely beneficial for some homeowners if they’re looking to refinance or make another expensive purchase, such as a car. These refinancing options can also help pay for unexpected expenses, such as property damage or medical bills.
The Biden administration and the specific mortgage lenders are using these bonus rewards to thank certain homeowners for their continued mortgage payments. For residents in California, these programs are beneficial for not only you but also for your area, as your participation in these programs can help support others in them. Refinancing also allows for a chance to remodel your home, invest in new technology (like solar panels for the California sun), or fix a damaged or crumbling structure. As many homes in the California area are damaged or in need of repair, refinancing is an excellent opportunity to make these needed fixes.
For those who want a new adventure with their refinancing, buying a second home is always a great option. Second homes, depending on where you live, are an excellent way to get away without spending a fortune on travel. You can also lease your second home to others to cover the mortgage payments.
The big break of refinancing allows homeowners to be more comfortable and flexible with their finances. These programs also incentivize on-time mortgage payments, and encourage new homeowners to be responsible and drive up their home’s value. Those native to California will agree that there is a natural attachment to the homes in the area, and it’s important to keep these homes in good condition with good owners.
If you’re interested in learning more about our services, or what other programs are available for California homeowners, contact us today.
References:
https://www.forbes.com/advisor/mortgages/what-happens-after-mortgage-forbearance-lifts/
https://www.creditkarma.com/advice/i/coronavirus-mortgage-payments-debt-relief-help
https://money.cnn.com/2010/09/08/news/economy/refinancing_help_for_underwater/index.htm