Are you thinking about refinancing your home? Depending upon the timing, equity in your home, and other factors — selling just may be a better option for you. Read on to explore 5 reasons why it is better to sell than refinance your home in Sacramento.
Equity
Equity is the portion of the home you actually own. In other words, it’s the percentage that is free of any mortgage note or other financial obligation. The exit strategy for any property should be considered at the time of purchase. It is wise to update your exit strategy based on the current market, moving when the price is at a high. By selling when the market is hot for sellers, you can reap the most advantage from your. Hesitating or holding out for a better price could allow the opportune moment to pass and result in lost equity. If you have a lot of equity based on the current value of your home, it might be better to sell than refinance your home in Sacramento
Changing Needs
Perhaps you bought a starter home and your family has outgrown the property. Often, it is much simpler to buy a new home that is built to suit your needs than to attempt to renovate or make additions to your current property. Major remodeling projects often lead to the discovery of serious and/or issues. Even if all goes well, renovations are expensive. Needing a larger home is a huge reason why it is better to sell than refinance your home in Sacramento, especially on homes that are older or in a state of disrepair. You could literally save thousands of dollars and months of time by moving upward and onward to begin with. You can avoid inspections and appraisals by selling directly to California Family Homebuyers.
Current Income
Income can change unexpectedly, and you may find yourself carrying the financial burden on a home that is suddenly more than you can afford. If the change appears to be permanent, you may want to consider selling instead of refinancing, which may only prolong the inevitable. This is one reason why it is better to sell than refinance your home in Sacramento. By selling now, you can pay off your existing mortgage while stepping into a more affordable property. This will also lower your annual property taxes, saving you even more money over the long term.
Debt
If you have significant debt, refinancing will just transfer your debt back to your home. Selling allows you to settle your debt with enough equity remaining to finance a less expensive housing option. Overwhelming debt may mean it is actually better to sell than refinance your home in Sacramento before your credit becomes adversely affected. Carrying too much debt can also mean that you may be unable to qualify for more credit. Should a lender take the risk and approve you for a loan, it is likely that you will be paying exorbitant interests, meaning you are actually losing any money you could possibly build in equity over the same time period.
Credit
The long-lasting effects on your credit of late or even missed payments are another reason why it is often better to sell than refinance your home in Sacramento. As time passes and your credit worsens, your credit rating will drop and some of your debtors may increase the interest you are paying on existing lines of credit. Especially if you find yourself nearing foreclosure. It is extremely important to face your troubles head-on and act quickly. Foreclosure can be a devastating experience, both personally and financially, appearing on your credit history for seven years.
The bottom line is, it may be better for you to sell directly to California Family Homebuyers right now than refinance your home in Sacramento. Whether your reasons are financial or because your property just isn’t the right home for you any longer, by selling now, you will end up ahead of the game. By working with California Family Homebuyers, there is no lingering around, waiting for the right buyer with the right offer. At California Family Homebuyers, we take the time to listen and are willing to meet your needs. We’ve helped many other people through this process. At California Family Homebuyers, we have a team of reliable professionals who can handle everything for you and are readily available to support you from the start through to the final day of closing. Why not let California Family Homebuyers answer any questions or concerns you may have and help solve your problems? Just send us a message or call California Family Homebuyers at (916) 907-6116 today!