When You’re Deciding Whether to Refi or Buy, Here Are the Questions You Need to Answer
As life and financial situations change for homeowners, they can face a crossroads where they’re forced to make a difficult decision—whether to stay in their home and refinance their mortgage or sell their current home and buy a new one. Making the right choice can have lasting financial consequences, and what that right choice is for a given homeowner will depend on a few key factors.
If you’re asking yourself whether to refi or buy right now, here are some other essential questions to ask and answer in order to figure out the best way to proceed.
1. How Has My Family Changed?
If the family under your roof has grown, like with new babies or in-laws moving in, you may need more room now. Outgrowing your current home can be a good reason to buy, instead of refinancing. This is especially true for expanding families in starter homes.The same is true for family changes in the other direction. When kids move out or fewer people are living under a single roof, buying a new home to downsize can be a smarter idea than refinancing.
2. Do I Like Where I Live Right Now?
There’s a lot to think about when it comes to location, from how a neighborhood may have changed to the quality of local schools, how long work commutes are, and much more. If you’re not thrilled about your current location and you’re ready for a fresh scene, it can be the right time to sell your current home and buy one in a more suitable location.
3. What Is the Housing Market Like Right Now?
Is it a buyers’ or sellers’ market? Has your home appreciated or depreciated in value? Are there any neighborhood projects or plans that could impact the value of your home and/or the local real estate market? If you’re looking for a change and you stand to gain in selling your home, it can be a good time to unload an older home and upgrade to one that’s a better fit for your lifestyle.
4. What Is My Financial Situation Like?
What kind of debt are you dealing with? Can you afford the costs of buying a new home and carrying a mortgage? Or would that put too much of a financial strain on you?Remember, you don’t have to buy a new home before selling your old one, but there are several things you can do to buy and sell a home successfully at the same time. Before you decide to refi or buy, take a closer look at your current financial situation and responsibilities so you can make a sound choice.
Should I Refi or Buy? The Bottom Line
When facing the question to refi or buy, homeowners who consider a few key issues will be able to make better choices. Sometimes, it also helps to look around at what’s available to see whether now is a good time to enter the sellers’ and/or buyers’ market. When you’re thinking about selling your home or buying a new house in Texas, get experienced help and cash back at closing when you work with the 5-star Realtors® at New Home Gurus.
Buying or Selling a Home in Texas? We Can Help!
New Home Gurus makes it easy to buy and sell homes in Texas. Our Realtors® can guide you through the process, helping you with offers, negotiations, and closing. Then, once you close on your new home, we’ll split our commission with you!
Homebuyers who work with New Home Gurus can get back an average of $4,500 to $12,000 at closing.
How Much Cash Can You Get after Closing?
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