The 2020 Coronavirus Pandemic took us all on a roller coaster ride of events. Physically, mentally, and financially, this past year has brought about momentous changes and unfortunately, a lot of stress. The wave of the pandemic was swift and unexpected, leaving millions of families to face financial hardships.
When it comes to paying the bills, households everywhere are having to make sacrifices to remain in their homes. Even though we are experiencing record-low mortgage rates, homeowners everywhere are struggling with paying their mortgages.
Assessing your family’s financial health for 2021 is key to ensuring that a repeat of 2020 doesn’t happen.
Key Takeaways from 2020:
According to Bankrate
- Among the half of U.S. households that took an income hit, 21 percent report being laid off or furloughed, and 19 percent report having their hours cut.
- A majority of respondents (51 percent) expect full recovery to take at least six months or longer, while an additional 6 percent think their income will never recover.
- An overwhelming majority of Americans (85 percent) are worried about their household’s income taking a hit, regardless of whether they felt an impact at the start of the pandemic in March 2020.
How to Prepare Financially for 2021
At Moayyer Real Estate, we want to see you succeed, not struggle! Take a look at a few tips we have shared to help get your finances in order for the New Year. Thankfully, businesses and thought leaders around the country have banded together to keep consumers and homeowners educated and informed about what lies ahead.
The National Association of Realtors (“NAR”) released the Protect Your Investment Guide designed to assist homeowners impacted by COVID-19. Protect Your Investment was created to help homeowners that are struggling to meet their loan obligations due to the Coronavirus. Additionally, NAR released Protect Your Credit, which explains the provisions implemented by the Coronavirus Aid, Relief and Economic Security (CARES) Act aimed at helping consumers protect their credit scores.
Focus on Income/Expenses
Financials are a two-way intersection. Money comes and goes each month. However, being aware of the expenses you have and which ones are necessary, versus not, can go a long way in saving you money. If you are currently unemployed due to the pandemic, make sure that you fill out your application to seek compensation for unemployment benefits. But more importantly, keep a checklist of your expenses vs. your income and begin to prioritize. Do you need Netflix AND Hulu, or can you do without one? These financial decisions may seem minuscule, but the cost savings over a year’s time could be pretty impressive.
Consider Refinancing or Taking Advantage of a Forbearance Program
Programs are implemented for a reason and are there to assist Americans everywhere when they need it most, and right now, many are needing financial assistance. For example, homeowners with a federally-backed mortgage can request a 180-day forbearance if they’ve been impacted by the coronavirus.
It’s no secret that interest and mortgage rates have hit an all-time low over the course of the past few months. Lower interest rates are great and all, but how do you know if it’s the right time for you to actually refinance?
First of all, what is Refinancing? Refinancing is the process of getting a new mortgage by changing the terms of the one you already have on your home. If you are tossing around the idea of refinancing, now might be a great time to see what you could get back. Getting a mortgage with at least a 1–2% drop in interest rate can make a dramatic difference in your monthly mortgage payment and the ability to pay off your mortgage at a faster rate.
Reach out to Moayyer Real Estate Group
If you would like to learn more about financial assistance with paying your mortgage or what to expect in the housing market for 2021, reach out to your friends at Moayyer Real Estate Group! Tony and April have a combined 40 years of experience and have faced many different types of markets. The pandemic may have set you back financially, but our team can help get you back on track with your goals.
Sources: Realtor Party