Should I refinance or sell?

Question

I currently have a mortgage of $95.000 balance.  The house is worth $325.000 according to my realtor. It wouldn’t be hard to sell but it would be hard to find our next house with the upgrades that we want. We have the option of looking for a new build too. Or should we refinance and then sell later?? I don’t even know how that option would work other than lower our rate and monthly payment. But we are set in getting a newer home. We don’t have any debt other than a car payment. Stable job, 401k, and some savings.

Lamar Hirthe · Accepted Answer

Go and look at your home possibilities.  Then decide if it’s the right time to move, or whether you can and would prefer to stay where you are.  If you are going to move soon, it would make no sense whatsoever to refinance.

Lamar Hirthe · Answer

To start with, these are not great questions for a real estate agent.  They are sales people.  They get nothing if you choose to stay in your home.  They could get commission on your sale and your new purchase if you choose to leave.  That said…..You seem to be looking at this from a pure financial standpoint.  If you’re set on getting a new home, then look at your timeline and to determine if you should refinance.  There are fees in refinancing which typically take several years to recover.  If as you say you’re set in moving, then work your agent on finding a place.

Lamar Hirthe · Answer

If you are set on getting a new home and can get what you want with the cash from selling,then just sell. If you can’t get enough from the sale to get what you want right now, then I’d refinance and save up and sell when I could get what I wanted by selling.

Lamar Hirthe · Answer

If you know you want to buy a new home, refinancing is stupid.  It takes time to recapture the fees in savings.

Lamar Hirthe · Answer

If you don’t want to live there and you need the money to put into another place, then you sell.  Isn’t that just basic common sense?= unless even with the $285K or so you would get is not enough to afford the place that you want.Refinancing is probably not an option unless you want to take $20K out because your balance is so under $120K – And we have no idea what your current rate is, so don’t know if it’s worth it or not.If you don’t plan on keeping it, it’s not worth the hassle of refinancing.

Lamar Hirthe · Answer

These are great questions for your real estate agent that knows your market.  Asking nameless people who don’t know your market aren’t in any position to offer you valid advice.

Lamar Hirthe · Answer

“we are set in getting a newer home”Well then you answered your own question.“it would be hard to find our next house with the upgrades that we want”No it wouldn’t.  It’s simply a matter of whether you can afford what you want or not.  If you’re saying you can’t afford what you want, then I really don’t know what your question is.Should you refinance?    Not if you’re planning to sell.   If you’re staying put, refinancing might be a good idea but you gave basically ZERO information for anyone to know.   What would be the point of the refinance?  Why do you have to refinance or sell?    Maybe you should do neither.You appear to be the same person who keeps asking this over and over without really giving much concrete information.For the last time…if you’re set on moving and you can afford the kind place you want, go for it.     Got it?

Prof. Carmelo Hilpert

Should I refinance or sell?

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