It’s clear to see that many people are worried about how the COVID-19 pandemic could affect them economically, not just medically.
While I can’t help you with medical advice, I can give you some tips on how to prepare for the economic burden it may bring to you.
Most homeowners in our market have a good amount of equity in their homes right now. It would be a good time to either take out a home equity line or credit or do a cash out refinance. The reason you would do that now is because if you or your spouse loses your job, you may not qualify for a refinance or credit line. If you apply for a home equity line of credit, you have the ability to get cash easily if there is a need. If you choose to do a cash out refinance, I’d recommend not taking every dollar you can- leave at least 25% in equity in your property, should you have to sell your home later. If you can cash out six months of living expenses from your home and wake up the next morning without a job, you’ll stay afloat while you try to figure out the next step.
Next, you need to preemptively cut your budget. If you don’t HAVE to spend the money on something, don’t spend the money. Be aware of your budget and be smart- the longer you can save, the less you spend each month and it will help you make it through tough times.
If you have questions about refinancing, feel free to reach out and I can help you figure out if it’s a good option for you right now!
