It’s hard to resist the ‘sell your house’ ads in your mail and also the frustration of mortgage repayments. Keeping up with monthly mortgage repayments can be a tough task. If getting a new loan to cut down the expenses your next thought? You might want to reconsider your options.
The pandemic had a hard hit on everyone, with people losing jobs and it is tough to manage expenses. Refinancing your mortgage can shorten the life of your current mortgage and also provide lower interest rates. It can significantly lessen your monthly mortgage payment although, selling your home makes more sense if you’re unable to manage the monthly installments. If you are confused between to sell your house or to refinance? Choose what is best for you by reading the blog below.
Possible Reasons To Refinance House
Refinancing is a process where you replace your existing mortgage with a new loan. People usually refinance their mortgages to get a new one for lower interest rates and reduce monthly payments. There are many reasons for homeowners to refinance some of them are listed below.
To Lengthen Or Shorten The Mortgage Term
Refinancing can help you lengthen the mortgage term which allows you extra time to pay off your loan. It also lowers the amount you are entitled to pay every month. Refinancing also helps in shortening the mortgage term. When you increase your monthly payment you repay faster and save the running interest amount. This way you own your house faster and save thousands on interest.
To Change The Structure Of Your Loan
If you have an Adjustable Rate Mortgage (ARM) and you’re past the fixed period, your monthly interest rates may vary significantly. You can refinance the ARM to a fixed-rate loan which will make your monthly repayment and expenses predictable. Changing the structure of your loan gives you the control of your monthly expenses.
To Change The Type Of Loan
Homeowners refinance their government-backed loan to conventional loan as they build equity. If you pay 10% of the down payment for a Federal Housing Administration (FHA) loan, you are entitled to pay the mortgage insurance premium. Although, when you build a 20% equity on the conventional loan, you can get away with the private mortgage insurance.
To Cash Out Your Equity
In cash-out refinance you replace your old mortgage with a new one with a higher balance. The difference between the old and new mortgage is paid in cash to the homeowner at much favorable terms. As these mortgages have higher principal and low-interest rates it can be used for almost anything like paying off debt or getting new purchases.
Look For Available Options
Considering refinancing as an option but want to sell your house in the coming future. So why not look at some options? Before jumping to conclusions.
A Loan modification is less expensive than refinancing. When you choose to modify the loan your lender agrees to make changes on mutual terms. It consists of changing your monthly repayment amount, interest rates and your term. In rare cases, the lender might also reduce a chunk of principal from the amount. So, if you are facing financial difficulties this might be an ideal option for you.
No-Closing Cost Refinance
While applying for a refinance, lenders usually offer you a no-closing-cost refinance. By picking this option you merge your closing costs in the principal of the loan. In a no-closing-cost refinance you pay a higher interest rate and pay nothing while closing.
It may sound enticing although, you’d end up paying closing costs on the term of your loan anyway. However, if you are selling a house early you might only pay a few dollars. A no-closing-cost refinance may be beneficial when you cash out your equity. It provides financial aid if you are selling your distressed home.
Choose To Hold Off On Your Refinance
It is always better to skip a home refinance if you are not planning to stay in it for long. It makes sense to hold off on your refinance when circumstances aren’t much favorable. Calculate the time you’d be living in the house to earn the money back from closing.
Sell Your Home For Cash
Refinancing your home may be flexible but in some cases, it may not be an ideal option. If you are selling your distressed home, refinancing may not be worth it. Selling your home to a cash buyer is a better deal you can sell remodeled houses to Elite Properties New York and avoid the hassles of refinancing. Elite Properties is a ‘we buy houses for cash company’, which means we buy houses in any condition. You can sell your house fast for cash in NY and close the deal in less than a week. We buy property for cash and also pay the closing costs, which allows you to move faster with your plan. Call us today on 718-977-5462 to know more.
Perhaps you don’t have money to take care of your existing home or pay your property taxes. Maybe you are struggling to meet the routine expenses and need a pronto solution to get over it. You might have thought about selling your distressed home many times but still never took any step due to the emotional attachment you have with the home. This is where you’re mistaken. To be honest, wasting time in analyzing the situation won’t do anything. A stitch in time saves nine. Therefore, you should sell your distressed home as soon as possible and utilize the money to buy a new property in NY.
How to Proceed for the Home Selling Journey?
Here are some distressed home selling tips that you must think upon before listing your property for sale.
Right Pricing is Essential
In the first place, you need to decide on a proper value for your home. Keep in consideration that distressed properties are sold at lower prices than the market rate. However, you need not intentionally lower down the price because almost every buyer bargains while buying a property.
For instance, you want to sell the property for $400,000. Now, if you ask for the exact amount to the buyer, he/she will definitely bargain. You’ll be lucky if someone’s ready to pay the price you wish for. But its probability is 2 in 10. So, tell the buyer slightly a high price to get a favorable deal. We suggest you do thorough research of the distressed house prices in NY and fix a selling price which would get you a price at least nearby to the marginal profit.
Focus on the Best and Repair the Rest
Your house might not be in good condition but, you can still sell it easily. For that, you’ll need to do homework. Simply make two lists comprising the best and worst features of your home. The best feature list is your weapon to manipulate the buyer to pay you a decent price. At the same time, the worst things list will also be helpful in the home selling process.
See, you can’t expect the buyer to pay a high amount until and unless your home has all basic facilities such as good flooring, drainage system, and proper electrical wirings. So, whatever falls under your worst features, try to repair them. If it’s very costly, then, leave it. Otherwise, make sure you’re providing all basic necessities. Having said that, keep your focus on explaining the best features of your home to the buyer. Convincing the buyer in a positive way will definitely prove fruitful.
Cleaning Can Work Wonders
It’s totally okay if you can’t invest much money in repairing your property. But you can surely clean the house by wiping down the kitchen cabinets, mopping up the old floor tiles, and getting rid of clutter in the porch area. A clean and tidy house will leave a good impression on your homebuyer even if your home lacks other things. Can’t even afford to hire a cleaner? Do it yourself! It won’t be a cake walk but, you’ll definitely save a lot of money. Simply buy vinegar or bleach solution and garbage bags for cleaning and organizing your space. It won’t cost you much. You can further involve your friends and family to do the needful.
Honesty is the Best Policy
So, you have made two lists, and you’re confident you’ll sell your distressed house like a pro. But, is there anything that you don’t want to disclose to your buyer? It could be anything, like your neighborhood is not that good or commutation is a problem in your area. If there’s something worth telling which you want to hide because you want to sell your property, you’re heading in a wrong direction. Dishonesty is never acceptable whether in a relationship or in a business deal. It could happen that your buyer gets to know such things from outsiders and he/she cancels out the plan of purchasing the distressed property. So, it’s always good to maintain transparency.
How Can Elite Properties Help You to Sell Your Distressed Home Quick for Cash?
If you want to sell your house fast for cash, you can contact Elite Properties. It’s one of the trust-worthy real estate companies in NY. Experienced real estate agents at Elite Properties have helped thousands of people in NY to sell their distressed properties in a hassle-free manner. They take care of everything right from managing essential repairs to property listing to legal paperwork to making a fair offer.
It’s natural to have an emotional attachment towards your home. But, if you look at the bigger picture, someone else will get a shelter because of you. There’s no greater satisfaction than seeing someone happy because of you. Follow the above-mentioned steps, keep a positive attitude, and prepare your distressed home for sale without any tussle. We wish you good luck!