If you’re considering refinancing your home, depending upon the reasons and the timing in your life and many other circumstances that come into play, selling just may be a better option for you. We will explore 5 reasons why it is better to sell than refinance your home in Fort Myers.
Equity
Home equity represents the valuable stake you hold in your property, essentially the portion you’ve truly paid off and own outright. This is calculated by subtracting any outstanding mortgage balance from the current market value of your home. Understanding your equity is crucial, not just for financial stability, but also for crafting a smart exit strategy.
Ideally, you should consider your exit strategy – how you’ll eventually sell or move on from the property – even at the time of purchase. A key factor in this strategy is capitalizing on market fluctuations. By selling when the housing market is strong and home prices are high, you can maximize the profit you earn from the equity you’ve built up over time. Hesitation or waiting for an even better price might cause you to miss this opportune moment. In a hot market like Fort Myers, where prices are likely to keep rising, selling your home could be a more strategic move than refinancing, which would simply extend your loan and not necessarily translate into more money in your pocket.
Changing Needs
Perhaps you bought a starter home and you find you and your family have outgrown the property as it currently sits. 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 extremely expensive issues and is a huge reason why it is better to sell than refinance your home in Fort Myers, 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 Core Real Estate Properties.
Current Income
Life can be unpredictable, and sometimes our income takes a hit we weren’t expecting. Maybe you lose your job, face unexpected medical bills, or experience a change in your industry that reduces your earning potential. If this financial strain seems likely to persist, refinancing your home might only be a temporary solution. Stretching your budget thinner with a higher loan amount could lead to further financial difficulties down the line. Selling your house, on the other hand, allows you to completely cut ties with a potentially unaffordable property.
This is where the Fort Myers market comes into play. By selling your current home, you can use the proceeds to pay off your existing mortgage and potentially even come away with a significant sum of money. This financial cushion can be a lifesaver during tough times. Furthermore, you can use the remaining funds as a down payment on a smaller, more affordable property in Fort Myers or elsewhere. This will not only lower your monthly mortgage payment but also reduce your annual property taxes. These ongoing savings can make a big difference in your long-term financial security.
Debt
Often due to circumstances beyond your control, you may find yourself facing serious debt issues. For some homeowners, instead of taking on more debt by refinancing, you may be able 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 Fort Myers 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
Late or missed payments can leave a nasty stain on your credit report, impacting you for years to come. This can have a domino effect beyond just the home you’re trying to manage. With a lower credit score, lenders may raise the interest rates on your existing credit cards and loans. This can make it even harder to keep up with your monthly payments, potentially creating a snowball effect of debt.
The key is to be proactive. If you’re facing financial difficulties that make it hard to manage your mortgage payments, don’t wait until foreclosure looms. Even a single missed payment can take a significant chunk out of your credit score, so addressing the situation early is crucial. Explore all your options, including contacting your lender to discuss potential modifications to your loan. Remember, foreclosure stays on your credit report for seven years, making it significantly harder to secure financing for a new home, car, or even rent an apartment. Taking action now can help you avoid this long-term financial headache.
The bottom line is, it may be better for you to sell directly to Core Real Estate Properties right now than refinance your home in Fort Myers. 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 Core Real Estate Properties, there is no lingering around, waiting for the right buyer with the right offer. Let a professional from Core Real Estate Properties take the weight off of your shoulders, ensuring your needs are met in the transaction. At Core Real Estate Properties, we take the time to listen and are willing to meet your needs. The experts at Core Real Estate Properties are always more than happy to explain every step of the process. We’ve helped many other people through this process. At Core Real Estate Properties 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 Core Real Estate Properties answer any questions or concerns you may have and help solve your problems? Just send us a message or call Core Real Estate Properties at 239-360-3176 today!