If you are thinking about refinancing your home, depending upon the reasons and the timing in your life, as well as other circumstances that come into play, then selling may be a better option for you. Here we will explore 5 reasons why it is better to sell than refinance your home in Baltimore.
1. Your Equity
Equity is the portion of your home that you actually own free of any mortgage note or other legal financial obligation associated with the property. The exit strategy for any property should be considered at the time of the purchase. It is wise to update your exit strategy based on the current market, moving when the price is at a high so you can reap the most benefits from the equity that you have built up over time. Hesitating or holding out for a better price could allow your golden opportunity to pass by and mean that you are actually losing equity. This is a significant reason why it is often better to sell than refinance your home in Baltimore
2. Your Needs have Changed
Perhaps you bought a starter home and you now find that you and your family have outgrown the property. 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 Baltimore, 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 by selling. You can avoid inspections and appraisals by selling directly to Maryland Home Buyers.
3. Your Current Income
Income can change unexpectedly, and you may find yourself carrying the financial burden on a home that is suddenly more than you can afford. If the change appears to be permanent, you may want to consider selling instead of refinancing. This is one reason why it is better to sell than refinance your home in Baltimore. By selling now, you can pay off your existing mortgage while stepping into a more affordable property. This will also lower your annual property taxes, saving you even more money over the long term.
4. Your 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 to refinance your home in Baltimore 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 interest rates, meaning you are actually losing any money that you could possibly build in equity over the same time period.
5. Your Credit
The long-lasting effects on your personal credit of late or even missed payments are another reason why it is often better to sell than refinance your home in Baltimore. As time passes and your credit worsens, your credit rating will drop and some of your debtors may increase the interest you are paying on existing lines of credit. Especially if you find yourself nearing foreclosure. It is extremely important to face your troubles head-on and act quickly. Foreclosure can be a devastating experience, both personally and financially, and will appear on your credit history for seven years.
The bottom line is, it may be better for you to sell directly to Maryland Home Buyers right now than to refinance your home in Baltimore. 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 Maryland Home Buyers, there is no lingering around, waiting for the right buyer to come along with the right offer. Let a professional from Maryland Home Buyers take the weight off of your shoulders, ensuring your needs are met in the transaction. At Maryland Home Buyers, we take the time to listen and are willing to meet your needs. The experts at Maryland Home Buyers are always more than happy to explain every step of the process. We’ve helped many other people through this process. At Maryland Home Buyers 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 Maryland Home Buyers answer any questions or concerns you may have and help solve your problems? Just tell us a bit about your property or call Maryland Home Buyers at (410) 657-2523 today!