Should someone re do their mortgage if they are looking to sell the house soon?

Answer 1

No, save the cost. Just spruce up the place and sell it. You will not recover the refi costs in less than 2.5 yrs, you will recover the costs you put in fixing up as it will help you get the price you are asking as long as it is reasonable and in a reasonable time.

Answer 2

Generally speaking, refinance will cost owner a fee (even though there are lender who advertise no fee, but those are already included in the mortgage). So, it is better you don't refinance.

Actually, it might be beneficial to lower your asking price. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.

It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.

For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).

Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.

Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

Answer 3

Not unless you will be making a huge savings in interest, or are having problems makng the payments andd need to refinance to lower them.

The reason is that it costs a lot to refinance.

You can make an easy calculation. Perform a cost analysis both ways - with or without financing. Multiply your current monthly payments over the length of time you plan to live in the house. This is your current total estimated costs. Than multiply your new payments over the same length of time, and add to this the refinancing costs. this is your refinance total estimated costs.

Then, adjust this total by subtracting the principal you will pay off (and collect when the house is sold) with both estimates.

You don't have to make these estimates yourself. the loaning institutions can make these for you.

I recommend starting at your current loan institution first. Get a current estimate, as well as a refinancing estimate. They may forego most of the loan fees if you refinance with them.

Then check the newspaper to find te best 3 rates elsewhere. Call these institutions to ask them about their fees, points, etc. (since you won't be living there long, you don't want to mess with points). Then take the institution with the best estimate and visit them.

If you do refinance, don't worry so much about paying the principal. Extend the loan over whatever period gives you the best interest rates - sometimes this is a short term loan, sometimes it is cheaper to get a long term loan. Also ask about no principal loans - the principal you pay off won't be that much - it may be preferable to pocket this money now by getting a loan in which you do not pay off the principal.

Answer 4

No, the savings in interest would not be likely to cover the expenses of refinancing.

Answer 5

You'll have closing costs which will eat your equity. Sell your home.

Answer 6

No because you will incur unnecessary closing costs!

Answer 7

No NO NO why??? Why pay the money

Answer 8

NO

NOT AT ALL!!!