The 5 Decisions Homeowners Face After Quarantine
Updated: Jun 11, 2020
It simply can’t be overstated how much meaning “home” has taken on in the past few months. In addition to living there, we’re now working, playing, homeschooling, being entertained and possibly climbing the walls – all in one place.
Spending so much time under one roof while the world is seeing such historic changes is bound to elicit questions of “now what?” In more ways than one, homeowners are wondering what impact the pandemic will have on their home. As the economy shows signs of re-opening, they may be making big decisions in the wake of #stayingathome, whether based on changes in employment, evolving feelings about the property, or just wanting to remain in control of the financial picture as the market transitions.
Here are five decisions you may potentially be grappling with in the aftermath of COVID-19:
In spite of looking at the same four walls 24/7, are you feeling even stronger about the value of your home – financially and personally? If so, then the decision to stay is a good one. However, when changes in employment are affecting your ability to maintain your mortgage payments, there are a few things to consider.
Forbearance is in the mortgage news a lot these days. It’s an arrangement with your bank or lender to delay or reduce your payment. This deferment can be costly and should be considered only as a last resort. Applying for one of the government packages or tapping your savings may be more practical. When possible, discuss your options with a mortgage lender before you’re in a bind.
More time spent at home may increase your awareness of its value. The housing market was strong and interest rates were low before COVID-19 and substantial equity in your property can be a viable asset when facing unknown outcomes from the crisis.
By refinancing, you can secure a lower interest rate, decrease your monthly payment, or shorten the term of your loan – all of which can provide some peace of mind for the coming months. A cash-out refinancing program may also offer a cushion or emergency funds for medical or education expenses.
As homeowners spent more time in their humble abodes, they may also become acutely aware of shortcomings or repairs that had been previously ignored. Room for improvement takes on new meaning when family members are in close quarters. Outdoor living and entertaining are looking more like necessities than a luxury, post-pandemic.
Refinancing or home improvement loans may be a great option for minor or major remodeling projects, as well as enhanced outdoor spaces such as decks, patios and landscaping.
If circumstances make selling seem like the wise option, don’t give up hope of a successful outcome. According to a Zillow study on previous pandemics and their impact on the housing market, they found that home prices remained fairly stable. Fewer real estate transactions mean consistent demand and less homeowners selling at a loss.
Thanks to virtual tours, e-contracts and additional digital services, determined real estate professionals are able to help buyers and sellers achieve their goals – even in these uncertain times.
No matter what situation you find yourself in when the market and economy begin to stabilize, you may have a decision to make regarding your home; even if it requires doing nothing. Meanwhile you can check the home values in your neighborhoods, evaluate your current financial situation and where you anticipate it going in the months to come, and discuss the best course to take with local experts.
EnTrust Funding (ETF) understands that this is not a typical recession or economic downturn. Contact us today and we can help you look at the potential decisions, and ultimately determine what’s best for you and your family. We wish you continued financial and personal health.