For many homeowners, there comes a point when they start asking themselves, “Should I sell or refinance my house?” Honestly, there is no straight answer to that important question because every homeowner is facing a different situation. The right answer to the question is going to depend on what the current owner is facing. If you are asking yourself whether you should sell or refinance your house, you need to consider a few different factors.
Current Market Situation
One of the most important things to take into account when deciding if you should sell or refinance your house is the current market situation. You want to do your homework and check out the current market conditions. Look into how long comparable houses are sitting on the market in your neighborhood, but also check how much comparable homes are selling for. When you sell your home, you want market condition favorable for sellers, which means you want a market where homes are not sitting for extended periods of time and where homeowners are getting the selling price of their home or more.
Something else you need to look at is how much equity you have in your home. Having little to no equity in the home means you should probably consider refinancing your home rather than selling it because the chances of selling your home for how much you owe.
When you refinance your home, you can have little to no equity and still qualify. This makes refinancing a great option for homeowners looking to lower their mortgage payments or shorten the length of their loan. On the other hand, refinancing isn’t a great option if you are trying to turn a profit on your home.
Perhaps the most important thing you need to consider when deciding if you should sell or refinance your home is your long term goals. You need to ask yourself if you want to live in the home for the long term. If the answer is, “No,” then you may be better off selling the home.
You also want to take into account your financial goals, especially if you are considering a refinance. When you refinance, you can opt for 10, 15, 20, or even 30-year mortgages. The loan term you choose may mean a higher mortgage payment that is paid off sooner or a lower payment that lasts for years.
No matter what you decide, the choice you make will have to come from your unique circumstances. If you can’t decide, contact a real estate agent or mortgage broker for advice.
You can always contact us here at 800-BUY-KWIK if you’re interested in selling your house for cash.