If you’re a homeowner considering downsizing or refinancing then you may have a tough time making sense of all your options and with many pros and cons, we’ll attempt to simplify this complex decision.
Downsizing: Pros and Cons to Going Smaller
Pro: Simplify and Save Trading a larger home for a smaller one means maintenance is easier and cheaper. Another pro to downsizing is your utility bills may decrease since you are heating and cooling a smaller space and, depending on your move, property taxes may come down, too!
Pro: Reduce Your Mortgage Generally speaking, less square footage comes with a lower price, so your mortgage should be lower and the equity from selling your current home will pay down or even better, pay off your next home.
Con: Tight Market Alternatively, with a generation of first-time homebuyers, you may find that smaller homes have a larger audience, so competition could be fierce.
Refinancing: Pros and Cons to Staying Put
Pro: Expensive Local Market It’s possible a smaller home with all the amenities and in a prime location could be just as expensive or even more expensive than your current home.
Pro: Current Home Fits Your Lifestyle Perhaps you don’t want the hassle and stress of moving and have your home fixed up just the way you like it. If your neighborhood, décor, and current upkeep are all working for you, refinancing may, too.
Con: Won’t Save Money in the Long Run If you’ve put 15 or more years into paying toward a mortgage, it’s likely you’re now paying less interest—and that’s a very good thing! Be sure to consider both your monthly payment as well as the total cost of your new mortgage before deciding if refinancing your mortgage will save you money. Still undecided? Talk to an Amplify Credit Union refinancing specialist to discuss whether moving or refinancing is the right option for you and your financial future.
Mortgage Basics: What Is Refinancing And Is It Right For You?
Refinancing your mortgage could save you money, help you pay off your home faster, or unlock the equity in your home if the time is right. Knowing your refinancing options is key to gaining the maximum benefit from your decision. Cash-out refinancing is a way to access cash as you refinance your home, allowing you to benefit from the equity in your home to get cash at closing. With this option, your existing mortgage and any liens on your property are paid off and replaced with a new mortgage giving you funds to meet your financial goals. Rate and term refinancing is a loan that may lower your interest rate, monthly mortgage payment, or may let you pay off your home sooner with a shorter loan term.
It may be a good option regardless of who your current mortgage is with and might be right for you if you are looking to stay in the property. Streamline refinancing is a fast economical way to refinance your home, allowing you to speed up the refinance process and making it possible to lower your current monthly mortgage payment, reduce your loan term, or qualify for a lower interest rate. The only way to know if you are a candidate for a streamline refinance is to speak to your mortgage loan officer and have them review the details of your current home loan. There are many mortgage refinancing options for many needs. But whatever your goals are, a mortgage loan officer can answer your questions and help you find a home mortgage refinancing that’s right for you.