December 2020 | Buy and Sell Properties Online New York December 2020 | Buy and Sell Properties Online New York

Month: December 2020 Posts

Sell Your House Or To Refinance? Choose What Is Best For You

It’s hard to resist the ‘sell your house’ ads or ‘refinance house’ in your mail and also the frustration of mortgage repayments. Keeping up with monthly mortgage repayments can be a tough task. Is getting a new loan to cut down the expenses your next thought? You might want to reconsider your options.

The pandemic had a hard hit on everyone, with people losing jobs and it being tough to manage expenses. Refinancing your mortgage can shorten the life of your current mortgage and also provide lower interest rates. It can significantly lessen your monthly mortgage payment although, selling your home makes more sense if you’re unable to manage the monthly installments. If you are confused between selling your house or refinancing? Choose what is best for you by reading the blog below.

Possible Reasons To Refinance House

Refinancing is a process where you replace your existing mortgage with a new loan. People usually refinance their mortgages to get a new ones for lower interest rates and reduce monthly payments. There are many reasons for homeowners to refinance some of them are listed below.

  • To Lengthen Or Shorten The Mortgage Term

Refinancing can help you lengthen the mortgage term which allows you extra time to pay off your loan. It also lowers the amount you are entitled to pay every month. Refinancing also helps in shortening the mortgage term. When you increase your monthly payment you repay faster and save the running interest amount. This way you own your house faster and save thousands on interest.

  • To Change The Structure Of Your Loan

If you have an Adjustable Rate Mortgage (ARM) and you’re past the fixed period, your monthly interest rates may vary significantly. You can refinance the ARM to a fixed-rate loan which will make your monthly repayment and expenses predictable. Changing the structure of your loan gives you control of your monthly expenses.

  • To Change The Type Of Loan

Homeowners refinance their government-backed loans to a conventional loan as they build equity. If you pay 10% of the down payment for a Federal Housing Administration (FHA) loan, you are entitled to pay the mortgage insurance premium. Although, when you build a 20% equity on the conventional loan, you can get away with private mortgage insurance.

  • To Cash Out Your Equity

In cash-out refinance you replace your old mortgage with a new one with a higher balance. The difference between the old and new mortgage is paid in cash to the homeowner at many more favorable terms. As these mortgages have higher principal and low-interest rates they can be used for almost anything like paying off debt or getting new purchases. 

Look For Available Options

Consider refinancing as an option but want to sell your house in the coming future. So why not look at some options? Before jumping to conclusions.

  • Loan Modification

A loan modification is less expensive than refinancing. When you choose to modify the loan your lender agrees to make changes on mutual terms. It consists of changing your monthly repayment amount, interest rates, and your term. In rare cases, the lender might also reduce a chunk of the principal from the amount. So, if you are facing financial difficulties this might be an ideal option for you. 

  • No-Closing Cost Refinance

While applying for a refinance house, lenders usually offer you a no-closing-cost refinance. By picking this option you merge your closing costs in the principal of the loan. In a no-closing-cost refinance you pay a higher interest rate and pay nothing while closing.

It may sound enticing although, you’d end up paying closing costs on the term of your loan anyway.  However, if you are selling a house early you might only pay a few dollars. A no-closing-cost refinance may be beneficial when you cash out your equity. It provides financial aid if you are selling your distressed home.

  • Choose To Hold Off On Your Refinance

It is always better to skip a refinance house if you are not planning to stay in it for long. It makes sense to hold off on your refinance when circumstances aren’t much favorable. Calculate the time you’d be living in the house to earn the money back from closing.

Sell Your Home For Cash  

Refinancing your home may be flexible but in some cases, it may not be an ideal option.  If you are selling your distressed home, refinancing may not be worth it. Selling your home to a cash buyer is a better deal you can sell remodeled houses to Elite Properties New York and avoid the hassles of refinancing. Elite Properties is a ‘we buy houses for cash company’, which means we buy houses in any condition. You can sell your house fast for cash in NY and close the deal in less than a week. We buy property for cash and also pay the closing costs, which allows you to move faster with your plan. Call us today at 718-977-5462 to know more.

Selling House quickly is always tough no matter how you do it, it will be a mentally and physically draining process. To achieve profit try selling your house in spring or summer when people can opt for walkthroughs. Although, if this is not your plan you might want to read about these obstacles before selling your home in winter. 

Accurate Pricing Can Be Difficult 

Setting a realistic price is a task for homeowners as they have a sentimental value attached to them. In winter, people celebrate holidays at home that add to their emotions and make them set high prices for their property. This can be a bad thing for sellers as it will only keep potential buyers at bay. A wrong or unrealistic price will turn buyers away making your property sit for a long time in the market. It is an unsaid rule when a house sits for a long period people become cautious and avoid buying such houses.   

In this digital world, everything is achieved with just a click, similarly to listings as well. People can easily add a filter and eliminate older listings from the website, which won’t help you sell properties online.  Setting a wrong or unrealistic price come with setbacks, doing a proper in-depth analysis will help in enticing more buyers.

Missing On Deadlines 

There are many facets while selling your house in the winter and one of them is deadlines. Most of the sellers who list their homes in winter are first-timers. When Federal Regulations and State and Local Laws are in the picture in a home sale it lengthens the process. The number of documents involved in a home selling process can be daunting which pushes deadlines further. Another possibility that pushes deadlines is inspections. There are multiple inspections involved like pest inspections, radon tests, etc. 

Agents Come With Added Costs   

There are multiple fees involved when you hire a real estate agent to evaluate the prices of your house while selling house quickly. Furthermore, there are commissions and other added fees when an agent is in the scenario. Most homeowners agree to sign a contract with all the fees involved only to avoid the hassles of paperwork. Although, in most cases, the agents become the biggest obstacle instead of selling their houses in winter.     

Walkthroughs Can Be Stressful 

Constant disturbances can hamper your personal life. We know welcoming people into your house every weekend can be stressful, and you always need to keep your house perfect and tidy. It can pile up even more during the holiday season as families come together for celebrations. Besides, people living in the north have it more difficult due to the snow-capped exteriors. It is almost impossible to carry out a walkthrough in such a tough climate.   

Prepping Your House For Buyers

Spending extra money on your house for improvements while selling house quickly is the last thing you would ever want to do. When you sell your house fast for cash in NY it becomes important to stage your home. In winter you might have to work harder to make your house appear more enticing and appealing to potential buyers. A well-staged house would sell faster than a house with no staging or improvements at all. Make sure you do a proper analysis before hiring a person to do improvements at your place. 

What’s The Solution To Sell Property in Winter?

The obstacles stated above can cause a delay in the traditional listing, which may take up to months to close a deal. You can always consider selling your house to real estate investors like Elite Properties NYC.

Why sell your house to Elite Properties?

  • Selling your property to us will help in faster closings
  • It avoids the hassles of hiring a real estate agent and paperwork
  • You avoid paying them upfront costs
  • Sell your house in just 3 days

When you have an easy option to sell remodeled houses then why go anywhere else? You can sell the property for cash in NY to Elite Properties, we buy houses any condition. Sell your distressed house to us and get cash in return, call us at 718-865-3523 today to know more.

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