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Should I Refinance or Sell My House?

Refinance or sell homeHomeowners often face a pressing question when it comes to considering their monthly budgets: Should I refinance or sell my house? The decision whether to refinance or sell a home is a difficult one, and the right answer for you depends on your unique circumstances and your unique home. To help you make the best decision, here’s a look at the pros and cons surrounding the decision to sell a house or refinance.

Pros of Refinancing

There’s a lot to love about refinancing. First of all, you get to stay in a place that’s familiar. If you have kids, this is even more important. They can stay in their comfort zones, attend the same schools, play with the same friends, etc.

You also avoid moving costs when you refinance. Moving can be expensive, as you probably already know, and it can also be time-consuming and effort intensive. Nobody likes the moving process, and you get to avoid it altogether when you refinance.

Finally, refinancing also helps you stretch your loan out. For example, if you’re five years into a 30-year loan, a refinance lets you redistribute your remaining principal over 30 years again. Yes, this means you’ll pay on your loan longer — if you stay in your house. But very few homeowners pay on the same 30-year loan for 30 years. You will enjoy a lower monthly obligation in the short term, and you can explore other financing and refinancing options in the future as you decide whether to move or stay in your home.

Cons of Refinancing

When you refinance, you’re beholden to the market. If rates are up, it’s rarely a good time to refinance — unless perhaps your credit has improved in quality or depth and you can secure better rates.

Also, refinancing often stretch your loan out when you refinance — you lower your monthly obligation, but you extend your term. This doesn’t bother some homeowners, but it may bother you if you’re looking forward to holding a mortgage-burning party when you pay off your loan.

Pros of Selling

Selling is often unavoidable, especially if you’re moving out of town for work or another reason and you don’t want to become a landlord and rent out your house. Selling also offers a fresh start. You can often access the same rates and terms as you could for a refinance, but you’re not constrained by how much equity you have in your home.

Cons of Selling

Moving is one activity that comes with a lot of hidden costs. First, you have to pay for movers or a moving truck or other supplies and manpower. These costs are only greater if you’re moving a long distance. Also, most new homeowners want to do some updates or renovations at their new home, so you must account for that as well.

There’s also the time and energy it takes to get to know a new home and a new neighborhood. There’s a great deal of excitement that comes with selling your home and buying a new one, but there’s also a great deal in the way of costs and to-dos.

For Help in York, PA, Choose CENTURY 21 Core Partners

At CENTURY 21 Core Partners, we offer a team of real estate experts who know the York market inside and out. If you’re trying to decide whether to refinance or to sell your home, one of these real estate professionals can provide expert guidance.

Contact us today if you have questions about selling or refinancing your home.

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