Homeowners stand to save money by refinancing, but some factors may make getting a new loan less worthwhile

The coronavirus pandemic has led to a dramatic decline in mortgage rates. But that doesn’t mean now is a good time to refinance for everyone.

Last week, Freddie Mac FMCC, +1.37% reported that mortgage rates hit a new record low for the fourth time this year, with the average rate on a 30-year fixed-rate mortgage dropping to 3.13%.

When rates hit their first record low of the year back in March, it triggered a deluge of refinancing activity just as many lenders were transitioning to remote work environments because of the spread of COVID-19. That led to a massive backlog at some lenders, with some borrowers waiting weeks to close their refinances.

Now, the market has settled down, and lenders have adapted to the coronavirus world. And the good news for borrowers is that most markets are served by mobile notary services, said Pat Stone, co-founder and chairman of title insurance company Williston Financial Group, and other states allow for entirely virtual mortgage processes. That means in most parts of the country getting a new home loan won’t mean risking your health, as infection rates remain stubbornly high in many areas.

But will refinancing your mortgage risk your financial health? Here’s what homeowners need to consider before closing on a new loan.