Many people are strongly attached to their homes. As a result, despite changes in their life, they may find it problematic to make the decision to sell. If you’re currently going through a situation that’s similar to this, you may be finding it difficult to decide on whether to sell or not. Because let’s face it, it’s not easy to let go of a property that has been home to both you and your family for years. As such, you may be considering refinancing your mortgage instead, which will allow you to retail your current property, rather than opting to sell it.
Well, if so, we are not here to tell you that you are wrong. That is because mortgage refinancing does have its place in the world, and can be a great option to turn to under the right circumstances. Refinancing your mortgage will allow you to trade in your old mortgage with the bank for a new one, which could possibly result in a new balance or monthly payment plan that is easier to handle under your new financial circumstances. Be that as it may, this approach is not optimal for everyone, and can actually be quite a horrible move if your situation is not right for it. In addition to this, it’s also important to understand when you should refinance a home, even if you are an ideal candidate.
In this blog, we are going to explore this subject in a little more depth and show how to know if you should refinance your home or sell it. For more information on foreclosure, here are a couple of resources on Understanding The Foreclosure Process in Minneapolis MN, and How to Avoid Running into Mortgage Payment Troubles in Minneapolis MN that you may also find useful.
Should You Refinance Or Sell Your House in South Saint Paul MN?
Read on to discover the top 3 questions you should ask yourself in order to determine between refinancing and home sale.
Question 1: Is Your Home Still The Ideal Size For You?
When you’ve lived in a house for a long time, it can sometimes be very difficult to let go. However, if you are ready to move into your golden years, selling your house in South Saint Paul may be the best option for you. In this instance, it could be time to downsize. If the kids have all left home and you find yourself with a large house you can no longer be happy in, moving to a smaller more cozy alternative could be the perfect option. If you sell, you will then be able to find a home better suited to your needs.
However, if moving to a new house does not appeal to you, many retired couples find living in a retirement community extremely appealing. This is typically due to the enjoyable lifestyle and amenities that these communities provide.
Question 2: What State is Your First Mortgage In
In order to qualify for refinancing on your mortgage, the bank will require you to meet stringent credit criteria. As such, refinancing might not always be an option. For those that are considering refinancing because of financial distress, selling your house instead could benefit you greatly in the long run. This is especially important if you’re struggling to meet your current mortgage payments, or if you have a poorer credit score.
If you have not lived in your house long enough to build a large enough equity and the new loan total is more than 80% of the current market value for your property, you will likely have to add private mortgage insurance payments. In general, this fee is added to your loan payments until your balance falls below the 80% mark. This is something that you should remain aware of when you consider refinancing your mortgage under financial constraints.
Question 3: Are You Currently Facing the Threat of Foreclosure
Mortgage payments can become extremely difficult to meet over time, especially if your financial situation changes. Maybe you’ve suffered a job loss or you are experiencing added bills that need to be paid. For whatever reason, if you are already having trouble making your mortgage payments at this time, it may be best to sell your house in South Saint Paul. By selling the property before any foreclosure proceedings begin, you can relieve yourself of any future stress and avoid the lasting stain of a foreclosure on your credit.
Sell Your House To FastPath Home Buyers in South Saint Paul MN
How you sell your home could mean the difference between catastrophic loss and salvaging your financial future. As such, if you’d like to sell your house fast and avoid any kind of expenses or fees, making a direct sell to FastPath Home Buyers may be the best solution for you. At FastPath Home Buyers, we buy houses in South Saint Paul MN and will provide you with a guaranteed sale and a quick closing date. We also provide a simple, straightforward process. So if you’d like to sell your house during foreclosure, we’re your best bet.
But best of all, at FastPath Home Buyers, we take the time to listen. Our goal is to meet the needs of your circumstances and help answer any questions or concerns you may have about what is right for your situation! So if you’d like to learn more about whether you should refinance or sell your house in South Saint Paul, call us at (612) 351-2384.
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