Can I Sell My House After Refinancing?
Have to move right now but just went through the refinancing process? Well the good news is that you can absolutely sell your house after refinancing your mortgage. At least, legally you can. It’s not a great financial plan but sometimes that’s the way things happen.
This article will give you info on both the refinancing process and the process of selling your home after refinancing. So if you are considering refinancing your mortgage but you also plan to sell sometime in the near future, you will be prepared to do so.
What Is Mortgage Refinancing?
Mortgage refinancing is the process of trading in your current mortgage loan for a new one. Many homeowners choose to refinance because they find better interest rates or they want different terms such as a 30 year vs 20 year term. This is done by obtaining a new loan and using your home as collateral.
What Happens During the Refinancing Process?
The refinancing process starts with checking your credit. A credit check is needed to determine if you qualify for a refinanced mortgage and to see what interest rate you can get if you do qualify. A credit check is also necessary so that your lender knows how much money they can safely loan you.
Once you are approved for the new loan, your mortgage lender will send out a professional appraiser to look at your property to determine its current value. Your lender will lend you a certain amount of money based on your home’s current value which has likely changed since you first purchased your house.
With this information in hand, they can approve and underwrite your refinancing package.
Many homeowners choose to refinance with the same lender because they already have a relationship. However, you can also use other institutions if you wish. Just make sure that whomever you decide on has a good reputation and is trustworthy.
How Does Refinancing Affect How Much My House Is Worth?
Refinancing your home will not affect its value. However, lenders are sometimes less willing to loan money to borrowers who have recently refinanced their mortgages. So if you do refinance soon after buying a house, it may take some time before you can get another mortgage because of this.
Selling Your House After Refinancing
Now that you have a general idea of how mortgage refinancing works, let’s talk about a couple things you should keep in mind when selling your house after refinancing.
Calculate Your Break Even Point
Your refinanced mortgage will come with its own set of fees and closing costs. That means that the money you will be saving from your new mortgage payment likely won’t be realized for a few months. So it’s smart to calculate when you will reach your break even point. This is an important figure to keep in mind if you are planning on selling your home before you reach that point. Until you reach your break even point, you may owe more on your house than it’s worth.
Take Your Time
The key to selling your home after refinancing is to take your time. As mentioned above, you will be at a disadvantage if you sell before reaching your break even point. So the best thing that you can do is wait until then to list it for sale. Selling your house for cash is a viable option if you need to sell your house right away, even though you just refinanced your montage. We will talk about that next.
So Can I Sell My House After Refinancing?
You can sell your house after refinancing, but buying a new home may be a bit more difficult. You will need to find a new mortgage lender after you refinance and there is always a risk that you won’t qualify for a mortgage because of the track record.
Sell Your House for Cash
If you find yourself in a bind where you’ve got to sell your house today but you owe more than it’s worth, then selling your house after refinancing for cash is a good route to take. You’ll make less than if you sold your house on the market but selling your house on the market comes with even more fees to pay. If you’re already behind, it’s best not to take on more repair fees, showing costs, and agent commissions. Depending on the condition of your home, you may receive a cash offer that pays off all or most of your mortgage. That would mean all you’ve got left to pay is closing costs and fees from the refinancing process.
Sell Your House to Quick Fix Real Estate
At Quick Fix Real Estate, we specialize in getting homeowners out of tight spots, like selling your house immediately after refinancing. Our three step process is simple. We conduct a free, no-obligation home inspection. We make you a real cash offer based on the inspection on the spot. All you have to do is accept and choose the closing date that works best for you. No more fees, just a check in your hand as soon as today. Contact us today to get your cash offer.
