Choosing between a we buy houses Washington DC company and refinancing vs refinancing a mortgage could be quite challenging. While houses offer good investment and a chance to own your property, however, economic hardship can push distressed sellers to consider selling their homes.
When considering choosing We buy houses Washington DC homeowners often consider whether to refinance the mortgage or sell to a cash home buyer. Some factors which can affect this decision are market conditions, house conditions and your present financial situation.
Let’s discuss which of these options will serve a distressed seller in Washington DC better.
Who is a cash home buyer?
A cash home buyer is a firm that buys property as-is with their money. Distressed sellers who choose this option don’t need to repair their houses before this deal can be completed, we buy houses Washington DC that need serious repair. They close deals quickly and are available for inspection every time.
What does Refinancing mean?
Refinancing applies to home mortgages. When a homeowner refinancing their mortgage, it means they are replacing their present mortgage via taking new loans. The new loans will likely have different terms from the former ones.
If you are a good customer, you are likely to be given a low-interest rate when refinancing. You might also be allowed to make a lower monthly payment, which could allow you to save some cash.
Refinancing comes with some costs though, which you need to consider if it’s better than just selling the house.
Choosing between Refinancing Vs Cash home buyer: 5 Things to consider
If you are faced with refinancing your house loans or just selling to a cash home buyer, here are some things to have in mind.
What’s your present financial condition
Your present economic status will determine if selling outrightly is your best choice of just refinancing your mortgage. If you are in a good position with finances with no debts and a good job, there is no reason to sell your house.
However, if you are bankrupt, in a divorce mess or moving abroad, selling to a cash home buyer is an ideal decision.
Check your mortgage lock-in period
A lock-in period is an economic obligation in your home mortgage which you will be fined if you refinance your house or sell your property. The fine is usually between 1.5% and 6% depending on your loan provider.
This is heavy considering the present situation and you will need to favor this before making a decision.
The present value of your house
You will need to access the actual value of your home if it’s higher than your loan. This assessment is important because it helps you understand what’s the benefit of refinancing your loans.
If your house valuation has dipped, it will be difficult to get extra loans. Selling your house in this situation is a better decision.
Is the repayment feasible?
Homeowners shouldn’t just be based on what banks suggest, but you should consider if it’s what you can pay. You have to reason to refinance your mortgage if you can’t make the necessary monthly payments.
In dire economic circumstances, selling your homes to a cash home buyer might be your only option.
Your current Credit score
Banks will only offer loans if they are sure that they will be repaid.This is meant to protect their interest and their customers. If you want to refinance your mortgage, you will need a positive credit score before you can access these loans.
If your credit score is below average, it is futile to attempt refinancing, just sell to a cash home buyer!.
We Buy Houses Washington DC
When in a dilemma to choose whether to refinance a loan or sell the property, some complexities arise. The right decision depends on your financial status and how fast you want the house sold.
If you are in dire need of cash and want your house sold as-is, using a cash home buyer is a good decision. Same Day DC offers quick and reliable home buying services for anyone who wants their houses sold quickly.