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.
There is always a debate amongst people about what is better? Buying house in cash or mortgage? In this blog, we will try to clear the picture and try to help you in the home selling process. A lot of finance experts say buying a house in cash can avoid drowning in debt. Although, the other half believe in getting a mortgage and repaying it over the 15/30 year mortgage. Every method of purchasing an asset has its pros and cons. We will share an overview of each method and how it varies in each situation.
Why One Must Buy House In Cash?
In simple terms buying your home in cash allows you to avoid foreclosures and you are free of debt. You have complete ownership of your asset as you buy the property in full cash. Although, every scenario has its pros and cons, scroll down below to know more.
Pros Of Buying House In Cash
Free Monthly Cash Flow
One of the big reasons to buy house in cash is free cash flow. If you buy house in cash you aren’t entitled to pay monthly mortgage instalments. It allows your income source in multiple bifurcations as per your convenience and needs. Although, you’d still be paying the homeowners association fees, property taxes and maintenance costs, homeowners insurance, etc. You will pay these extra costs even if you don’t get your house on mortgage. When you buy house on a mortgage, you pay a big chunk to the lender whereas in this case, you avoid it entirely.
Save A Lot On The Interest
If you purchase a house on cash, you can save a lot on the interest of the mortgage. When you take out a mortgage, the interest rates are bound to escalate over the tenure. Example: A mortgage of $170,000 having a 4.375% interest rate costs you around $135,000 as of the interest expense for 30 years. Furthermore, mortgage debts are one of the cheapest in the USA if calculated on the APR (Annual Percentage Rate) basis. So, buying your home in cash might save a big chunk on the repayment.
You Are A Preferred Prospect
Sellers always prefer cash buyers as the deal closes faster. When a seller sells the property to a cash buyer, it only requires the buyer’s due diligence and mutual closing date. Whereas, when a buyer applies for a mortgage, he/she has to work on a lot of things. Things like the verification process, legal documentation, the underwriting process, etc. The real estate market is big, but sellers usually pick cash offers as they are enticing and close faster. Also, cash offer allows negotiation in closing costs as you trade in hard cash. If you are a cash buyer you’ll be the preferred prospect instead of the one with a mortgage.
Faster Closings And Lower Closing Costs
When you buy a house in cash, you avoid paying the associated loan fees. Also, costs like the originating fee, mortgage insurance premium, credit card report fee, etc. A cash offer may help you get away with legal processes and verification. Remember, an all-cash offer is less than the traditional bidding price. Getting paid in hard cash eventually is better than the orthodox mortgage bid, which is time-consuming. Additionally, as stated above, you close a deal faster with flexible closing costs.
Cons Of Buying House In Cash
Tying a Lot of Money in One Asset
If your property is worth $150,000 and you are a cash buyer, it can be quite risky. If you invest a large amount of your savings in one asset, you are tying up a lot of money. Such transactions do not show a positive outcome on your credit score.
The real estate market or a house is an illiquid asset, which means it is difficult to sell it fast. Selling a home is time-consuming and a daunting task. Assets like bonds and stocks which have high liquidity are easy and quick to re-sell whereas, a house is not. Therefore, putting a lump sum amount in one asset is never ideal as it slumps access to the liquid assets.
Missing Out On Tax Benefits
The itemized taxes may help in putting the money back in your kitty. You can deduct a lot of amount on mortgage rates through itemized taxes. Itemized tax deductions levy on multiple assets; it is advisable to check the taxes before purchasing. If you are using cash as your primary payment source then you are definitely losing some good tax benefits.
You Are Left With No Savings
Buying a house in cash blocks your savings, and you have nothing, which means no emergency funds. It is always advisable to keep petty cash handy during an unexpected crisis.
Why You Must Consider Getting A Mortgage?
Buying a house on a mortgage allows in maintaining your savings and caters to the funding. Many people do not have enough savings to buy a house on cash. Prospects get a mortgage and keep building the equity over the tenure of repayment.
Pros Of Buying A House On Mortgage
When you get a mortgage, you have the flexibility to put your savings in other investments, which promises good returns. You can pick from innumerable liquid investments and grow your wealth and manage your monthly payments as well. Buying a house on a mortgage is always a better option as you have more flexibility to manage the money.
Low Mortgage Rates
Comprehending the pandemic and the current state of the market, it’s a better option to opt for a mortgage. The mortgage rates are low, and the inventory has houses sitting for potential buyers. Hence the above makes it an ideal situation for purchasing a home.
Improve Your Credit Score
If your credit report shows timely repayments, you will ultimately have a good credit score. Unlike buying a house with cash, it is essential to show the diversity of debts for a better credit profile. The credit reporting agencies prefer timely repayments of debts inclusive of the home loans. It improvises the borrower’s profile allowing them to get a faster mortgage and boosting the credit score.
Advantages Of The Tax Deduction
Mortgage debts are tax-deductible, which means more benefits for the person getting a mortgage. Married couples planning to buy a home can write off interest taxes up to $750,000 if filing together. If you are filing separately, you can write off tax interest up to $375,000. Post the tax reform in the year 2018 write-offs, were not as profitable. Although it still is beneficial for homeowners with outstanding mortgages.
Cons Of Buying A House On Mortgage
The Intricate Mortgage Process
It’s no hidden truth that getting a mortgage can be a really daunting and tiring process. You have to keep a track of all financial documents inclusive of your IDs, which can be frustrating at times. Lenders will ask you for every detail and if you miss even a single document, you won’t qualify for the loan.
Paying Mortgage Insurance Premiums
When you pay less than 20% on the property, having a mortgage insurance premium will be mandatory. A mortgage insurance premium is an addition to your monthly mortgage payments. Insurance is an added cost to secure the lenders in events if you miss out on paying the instalments.
Drawback Of Additional The Costs
When a mortgage has lenders involved, it always comes with extra costs. The buyers are liable to pay lender fees, closing costs, mortgage origination fees, and appraisal fees. These additional fees can add to the existing cost and make the purchase even more costly.
You Still Don’t Have The Ownership Of The Property
When you buy a house on a mortgage, the lender has ownership while you keep making the monthly payments. They are entitled to hold your property until the last instalment. If you fail to pay a consecutive number of instalments, there is a high risk of losing your home.
We know buying and selling a home is an overwhelming task. It can be a very confusing, lengthy, and mentally draining process. We tried to cover the pros and cons of buying a house in cash or by getting a mortgage. So choose wisely keeping in mind your monetary status and plan futuristically.
If you are planning to sell your house fast for cash in NY, get in touch with Elite Properties. It is a ‘We Buy Houses For Cash Company’ which means you can sell your house fast for cash. Give us a call on this number 718-977-5462 and we’ll help with fast home selling.
Losing your job is a very tensed and stressful situation after which selling your house becomes the only feasible option. The burden of covering insurance and mortgage stands to be the need of the hour. In such circumstances, you wouldn’t want to wait for the traditional home selling process which can take months or even years. If you want to learn about the topic on ‘How do I sell my house fast after job loss?’ scroll down below to get the insights.
Selling your house to ‘we buy houses for cash’ company will help you in many ways especially when financial crisis come into play. Many foreclosures occur due to job loss and unemployment or homeowners lack cash, which becomes a problem while you pay mortgage or insurances. As a fact, foreclosures can lead you to bankruptcy and you won’t be given any loan further as your credit score is affected.
Avoid the Hassles of Clean Up and Repairs
In such tight constraints, it is almost impossible to give an aesthetical change to your house. Making physical changes or cleaning your house can be time – consuming whereas, staging your home can be extremely costly. Furthermore, it is difficult to find buyers who would buy your house in a traditional way. Here, you can get in touch with ‘we buy house as-is’ companies and they will take care of the rest. There is no need to spend a dime on de-cluttering of your house, staging or improving the curb appeal, once you get in touch with them.
No Need of Listing Your House in the Market
Listing your home in the market requires a lot of time, the process can last up to many months until you have found a serious buyer. People end up hiring a real estate agent which again is an additional cost while they have naught budget. An Agent will always end up advising to stage your home and make it presentable before you list the home in the market. Not forgetting, you will have to pay around 6% commission for the services they provide adding to the rest, closing costs and tax fees are the left out aspects that round up the deal while closing.
You can also chuck the process of walkthrough, as it typifies in energy, money and time consumption. It is a long process that doesn’t elude the havoc created by inviting strangers to have a look around your place. Showings additionally can hamper your timeline as well, instead of finding ways to achieve an income source you end up showing your house to strangers who’d hardly care to buy.
Sell Your House Fast For Cash
Lastly, all you can do is sell your house fast for cash and save yourself from the frustration of home selling process. Selling your house to Elite Properties can save a lot of your time and money altogether in one, how? We are a cash buying company which means we buy your house as-is without any commissions lying in the middle of the road. We propose you a no obligation offer and buy your house at the current market value which means; only profit and no loss. We also pay the legal fees and closing costs. It also advised to do some research around the neighborhood and get insights of selling your house.
The most feasible option is to sell your house as-is to us, rest assured we’ll help you in this tough situation. Call us today at 718-977-5462 or visit us at Elite Properties.
If you are a damaged property owner, you are certainly looking for selling your damaged house fast. Damaged houses prove to be a big cost consumer, it clutches a lot of repair costs which can’t be covered just by your equity. We understand selling a damaged house is frustrating and stressful as it needs repairs and your situation as a homeowner is desperate. Hence, we would like to provide you with best options to sell your damaged house fast. Whatever the condition of your house would be, we will promise a guaranteed sale.
Reasons That Cause Damage to Your House
There are multiple reasons that cause damage to your house; natural calamities or peculiar occurrences of events the array is extensive. Natural crisis like strong gusts of wind, heavy rainfall, tornados, hurricanes, hail storms and fire are some of the major reasons that damage your house enormously. Other than natural calamities instances like bad tenants, theft and vandalism are also some of the causes of damage to your property. While these instances can’t be ignored, the best way out of it is to sell your damaged house fast. As considering improvements will be extremely costly.
Why Repairing Is Not a Feasible Option?
The reasons stated above can extensively damage your house. If your home is damaged due to the natural mishaps it will definitely cost you thousands of dollars which is still not enough. These damages require a lot of money that can leave you broke. In some instance the damages are so major that repairing the house will cost you twice the retail price of your house. Repairing a ceiling or flooring will consume maximum of your saving while else will only add up to costs. If you’re considering repairing as your option, think twice as it will consume your time, energy and a big chunk of capital.
While repairing is not a feasible option, you can always think to sell your damaged house fast to we buy houses for Cash Company. You can sell your house within 3 days to us at Elite Properties and we will propose you with a no obligation, all-cash offer. This will provide you with fair amount of money in hand in return to your damaged house which will help in funding for your new shelter.
Location Plays a Vital Role
Similar to other reasons selling your damaged house requires a good location. When you have a damaged house in a bad location, it will certainly require a lot of filtration. People perceive some neighborhoods as bad although the surrounding might be pleasing. In a nutshell, bad location will affect your home sale negatively.
For example: A house near a school is considered as a good location while a house near railroad tracks is labeled as a bad location for evident reasons.
If you are residing in a bad location or a bad neighborhood you can put focus on the good points to sell your house fast. A right approach is to lower the price of your house and emphasize the features of your house. If you are residing in New York you can sell it to us, we buy houses in any location.
We Buy Houses in Any Condition
Sell your damaged house as-is to Elite Properties. Selling your distressed property to us will save you money and time. While selling through a real estate agent will take you ages, selling your damaged house to us will cut the repair costs. We will close the deal in less than a week so you can devour the perks of working around your timeline.
The burden of repairing a damaged house is taxing and lengthy, selling it to cash buying companies is the most convenient way out of the chaos. Elite properties makes your life easier with fast closings and all-cash offer. If you want to sell your damaged house fast, call us here 718-977-5462 and we will buy your house in any condition and any location.
A divorce is a very stressful situation, not just for the couple who are separating but also for the rest of the family as it includes several decisions that can put many lives on stake. Similarly, the case is much complex when property and money is involved.
We are here to help you in this crucial time and guide you through the topic; understanding how to sell a house fast during divorce, where you would want to make firm decision-making moves and remain stress-free in the coming time of your life.
Establishing ownership is done for determining the possibility of how the couple can sell a home. Ownership of a home means; where either of the parties have lived for a substantial amount of at least two years for tax concerns, which is usually pre-defined by the state. In some states the law says; if a person who purchases a property on their own name then, in that case, that particular person is the sole owner of that property. Meaning, if the person decides to sell the property he or she will be entitled with the proceeds.
While in most states the people obey the common law standards which states; if the non-owning partner resides in the home for some years and contributes partially for the appreciation of the property such as paying installments or settling mortgage by some amount, then that person or the spouse would keep a major financial interest through the profits that would be achieved post-sale.
Splitting Assets And Capital Gains Taxes
The division of profits after the home is sold relies on aspects like mortgage debts and other liens like outstanding property taxes including the additional terms of divorce. There can be moderate alterations while a divorce is finalized, reason being either of the spouses would have invested a large amount of time or money respectively.
Capital gain taxes means; if you have held on an asset for more than a year then you are liable to pay the duty on them which is also known as tax paid on capital gains. If the married couple has filled jointly, they may exclude around 500,000 dollars of the proceeds from their tax liability.
Post the divorce process is complete the tax exclusion has dependencies on each spouse’s qualification of the exclusion. If one spouse can meet the requirements then he or she may exclude up to half the amount that is 250,000 dollars whereas the other one would only be able to claim a partial portion of the amount.
When To Sell A House?
• Selling House Before Divorce
Selling the property before divorce has its own benefits which are associated with liquid assets and tax liabilities. If the couple has been living for more than two years in the property, then it has no apprehensions that either of the spouses will miss to satiate the requirements for a full exclusion of 250,000 dollars per person for capital gains. Furthermore, the profit from the home sale will be spilt that would provide funds to pay outstanding debts and start a new life.
• Selling House During Divorce
Selling your house during a divorce is very strenuous, as divorce in itself is an expensive process. There is a lot that goes into a divorce which is paying lawyer’s fees, splitting of assets and piles of other expenses that occur overtime. While selling your house during divorce is expensive, it can provide moderate protection for both parties. It can aid in funding long divorce processes, when there has been great negotiation involved to settle down the deal. You can also sell your house to companies that buy houses for cash during divorce and sell Your House within 3 Days. You’ll get cash in return for your property which helps both partners in their new beginnings.
• Selling House After Divorce
Couples who have children look for an ideal time to sell the house. In some cases, the person residing in the house post the divorce is finalized will buy the other partner’s interest in the home for an unsoiled sale. Whereas, other couples may decide to pay the mortgage installments to meet child support obligations and alimony.
If the above mentioned process prolongs for more than three years before the sale is complete then the spouse who is no longer living in the house is liable to get the larger share of capital gains taxes post sale.
Consider A Short Sale
If you have remaining outstanding debts left, you’ll have to decide mutually who is going to pay the remaining amount. If nobody agrees to pay, then considering a short sale might be the smartest option for you. It will help in accelerating the daunting home selling process. With the help of Elite Properties’ you stay stress-free as we take care of all the legal process required for a short sale.
A short sale is an agreement with your lender which states the house can be sold for less than your mortgage amount. Opting for a short sale is much preferable than having a foreclosure, a foreclosure might ruin your credit score for seven years, while in a short sale you’ll be tagged clear.
List Your House For Sale
If you wish to sell your house while having divorce then you should consider to listing your house for sale. You can get in touch with a real estate agent who will provide you with the best estimate of your property or you can hire a professional appraiser too.
It is advised to do the required upkeep of your house in advance and perform minor improvements as it will help in surging the cost of your home. Factors such as condition of the property as a whole, size of bedrooms, carpet area, neighborhood, improvements that are required, etc. will decide the final appraised price of the property. A real estate agent will also think through the recent sales and comps in your locality to cross verify.
Although, it is a time taking process and if you think to work on a faster pace this isn’t a suitable option for you.
Sell Your House Fast For Cash
Multiple options have been stated, which could apparently be time taking and energy consuming. Divorce is a situation where you are emotionally drained. In such times, you may be searching for companies that buy houses fast, which will help you get away with the never-ending home selling process. ‘Elite Properties’ is a ‘we buy houses for cash company’ in New York that buy your house in any condition and proposes you a no-obligation cash offer. You can sell your house within 3 days without the hassles of the legal process and expedite the home selling process. This will help you save a lot of time, energy and definitely money as well.
The Bottom Line
In the blog, we showed you a complete scenario and made you understand the possibilities of selling your house fast while going through a divorce. Besides, If you have any other real estate related concerns you can get in touch with ‘Elite Properties’ they will help you with all your distresses and provide the best possible real estate associated solutions each time.