Many people are strongly attached to their homes and find it difficult to make the decision to sell, despite changes in their lives. If you are having financial issues and could use the money but would rather not sell, refinancing is an option. But, how do you know if you should refinance or sell your house in Pensacola?
Too Much Space
If you are ready to move into your golden years, selling your house in Pensacola may be a better option for you. Maybe it’s time to downsize instead. The kids have all left the nest and now you are left with a home suited for raising children. Selling your current home and downsizing could be exactly what you need to help you find a house better suited for your needs now. If this sounds like your situation, selling may be the best option for you.
Low Credit and Financial Struggle
In order to qualify for refinancing your mortgage, your lender will require you to meet stringent credit criteria. If you have a low credit score, refinancing may not be the right fit for you. Additionally, if you have not lived in the home long enough to build a large amount of equity and the new loan total is more than 80% of the current market value for the property, you will likely have to add private mortgage insurance payments. In general, this fee is added to your loan payment until your balance falls below the 80% mark again. If you are dealing with low credit and need the money for financial reasons, your best option may be to sell your Pensacola house.
Current Mortgage and Foreclosure
If you already have a mortgage and have trouble making your payments now, and you are unlikely to be approved for refinancing anyway. It may be best to go ahead and plan to sell your house in Pensacola, before facing foreclosure. By selling the property before any proceedings begin, you can relieve your stress and avoid any negative marks on your credit report. Marks from foreclosure can effect your credit for the next seven years.
If you choose to work with a real estate agent, keep in mind any fees and commissions you would have to pay. Factor in the cost of the realtor, the holding and living costs of the property, and payments you fell behind on when figuring up an asking price. If you are even able to get your asking price and can avoid negotiations on the property, it’s important to understand that you won’t be pocketing all of the money that your house sells for.
If you’d like to avoid the costs and have a straight forward offer that allows you to pocket everything, making a direct sell to Southern House Buyers may be the best solution for you. Southern House Buyers provides you with a guaranteed sale and a quick closing date. Here at Southern House Buyers , we value a simple, straightforward process. Our goal is to meet the needs of your circumstances and help answer any questions or concerns you may have about what is right for your situation! We take the time to listen. Ready to learn more about if you should refinance or sell your house in Pensacola? Call Southern House Buyers at 251-333-7556 or send us a message to learn more about what we can offer you!