To refinance or to sell? That is the question.
If you are ready to shake things up with your mortgage but aren’t sure what your best option is, you have come to the right place. While you should always speak with a professional loan officer to help with all your refinancing needs and questions, this can help you decide if you’re ready for that conversation.
Whether you are looking to go after a shiny refinance offer or sell your home and get a new loan, you are probably wondering which one will put you in a better financial position. The truth is, both of these options can help you achieve that goal depending on your situation, and we want to provide you with the tools you need to make the best decision for you.
Follow these three steps to identify your next move:
Step 1: Evaluate Your Finances
If you aren’t sure whether refinancing or selling is best for you, consider three critical factors: your credit, your debt levels, and your current income. If you are making more money, have less debt, and have improved your credit score since you qualified for your existing loan, you may have a higher chance of getting a better deal on a new loan and it’s time to talk to a loan officer.
If all of these factors are relatively the same or you are carrying more debt now than you were when you first qualified for your loan, it might be in your best interest to wait it out. It’s essential to start here because whether you refinance or sell your home, you will have to qualify for a new loan.
Step 2: Analyze Your Situation
This is arguably the most critical step because you need to know your destination to pick the best route. Start by answering the following questions:
What is your end goal? Or in other words, what do you hope to gain by refinancing or selling? Some common goals are to ease up on expenses, to pay off your loan faster, to pull cash out to remodel your home, or to get ahead financially.
Do you plan to move in the next two or three years?
Are current mortgage rates lower than your current rate?
Has your home gone up in value since you bought it?
Do you have a second mortgage, student loans, or revolving credit debt?
Do you have private mortgage insurance?
Step 3: Choose Your Expert
Now that you have answered those questions, you are ready to talk to an expert! We’ll tell you what kind of expert based on how you answered certain questions.
If you answer YES to these questions…
Are available mortgage rates lower than your current rate?
Do you have a second mortgage, student loans, or revolving credit debt?
Do you have private mortgage insurance?
And if your goals include easing up on expenses or shortening your term, it’s time to talk to a mortgage lender about refinancing.
If you answer YES to these questions…
Do you plan to move in the next two-three years?
Has your home gone up in value since you bought it?
And if your goals include upgrading your space and negotiating a better interest rate on your mortgage loan, it’s time to talk to a Realtor® about moving.
At Blakemore Real Estate, we take great pride in partnering with the best vendors in the business.
If you are ready to refinance but don’t know an exceptional lender, look no further! We are happy to introduce you to one.
If you’re ready to sell, we also know someone. (Hint: They work in our office.)
