Are you thinking about refinancing your home? Depending upon your reason, selling your house may be a better choice.
Almost 40% of homeowners in the United States are mortgage-free, while the remaining 60% are making the decision about refinancing. If you are trying to decide whether to remodel or add to your house or sell your current property and purchase another one, we are here to assist you today. Continue reading, and we’ll explore five reasons why selling may make more sense than refinancing your home in Omaha.
The portion of your home that you truly “own” is known as home equity. Although you are still considered the homeowner, your lender has an interest in the property until you pay off your mortgage. Home equity is commonly a homeowner’s most valuable asset. It will come in handy later in life, so learning how it works and how to use it wisely is a plus for you. The current value of your home is where home equity begins. Subtract any amounts owed on any mortgages or other liens from the total. These liens could be purchase loans used to buy the home or second mortgages were taken out later. The difference is your equity. Your lender does not own any part of the property unless you have a shared equity mortgage, which is uncommon. The house is yours, but it is being used as collateral for your loan. Your lender secures its interest by obtaining a lien on your property.
#2 Over Time, Our Needs Change
Maybe you’ve already purchased a starter home, and over time, you notice that your family has outgrown the property. Sometimes, buying a new home that is more suitable for your current housing needs is simpler than refinancing your house to pull out equity and renovate or make additions to the property. It’s wise to remember that some renovation projects may take a lot of time and cause major familial strife, as family members’ patience wanes when the project takes longer than expected. Not to mention, renovations may require you to spend money that you might not want to put forth, especially if you have other areas in your life that require financial investment (like paying for children’s or grandchildren’s schooling or saving for retirement). In some cases, selling your house just as it is, without making major updates, could save you thousands of dollars. Also, you can often avoid costly appraisals and inspections when you sell your property to a direct home buyer.
#3 Changes In Income
Sometimes unexpected changes in income may occur, which may cause you to face financial burdens when you own a property–how will you pay the mortgage? If this change becomes permanent, you might want to consider selling your property instead of refinancing. If you sell your property, you can pay off your existing mortgage while moving into a more affordable home. Selling will also reduce or eliminate your annual property tax obligation, saving you more money in the long term. In contrast, if you experience an unexpected change in income, and then you decide to refinance in order to pull some money out of your home’s equity, you may put yourself at risk if your income isn’t sizable enough to make the larger mortgage payments.
#4 Debt Issues
Due to some circumstances that we don’t have any control over, you may often encounter serious debt issues. Some homeowners take on more debt through refinancing. It is also possible for you to settle your debt by having enough equity to finance a less expensive housing option. It’s also possible to avoid having an overwhelming debt by selling our property rather than refinancing it before adversely affecting your credit. Because when you carry too much debt, this may prevent your credit from being approved. You will likely be paying excessive interest, meaning you’re losing any money you could build in equity over time.
#5 Credit Problems
The long-term impact on your credit when you have late or missed payments is another reason why it’s better to sell your house than refinance it in Omaha. Over time, as the status of your credit gets worse, your credit ratings decrease. A result of this is your debtors can increase the interest you’re paying on the existing credit lines, especially when you’re about to get a foreclosure. It’s important to face the challenges fast because foreclosure can be a devastating experience, physically, emotionally, and financially.
How Can Anna Buys Houses Help?
The bottom line here is, you can avoid all of the issues and problems if you choose to sell your house directly. Whether your reasons are about being financially able or you feel that your house is no longer the right size for your family. By selling it to a direct homebuyer, you will be ahead of the game. Working with us is easy, convenient, and you don’t have to wait for the right buyer with the right offer. Because we can take the weight off your shoulders, ensuring that your needs are being met in the transaction. Our team is more than happy to assist you in every step of the process. We are a team of reliable professionals who can handle everything for you.
See: 5 Benefits of Selling Your House for Cash (annabuyshouses.com)
Why not let us answer any questions or concerns you may have and help solve your problems? Just send us a message or call Anna Buys Houses at 402-313-8700 today!