I had a past client message me the other day asking for me to do a market analysis on their home (which I am always more than happy to do for my past clients) as they were thinking about refinancing their home/mortgage. And while the thought of selling is more of a logistical question, i.e. are we running out of space or is it time to downsize, refinancing is more of a long-term financial strategy. The former question only you can answer but the second question I am more than happy to assist people with to see if it makes financial sense so here are a couple considerations to think about.
One, am I at least 78% to 80% (I say at least 80% as a lot lending institutions are running at 78% while some may still be at 80%) invested in my property? This is where appraisals and market analysis’s come in. If you aren’t at least 20% invested into your property, it will either not be possible to refinance or you’ll have to come in with the amount of money that is necessary to bring that value to at least 80%. So again, do you plan on staying in that property for a long enough period of time where it makes sense to refinance—meaning will the cost to close on the new loan, as well as any money that you may need to bring in to get that value to 80%, be ‘worth’ it by the time you plan on selling?
Second, and this is the main point to consider and the reason why I decided to write on this topic, is that we are approaching the Spring Market where statistically and historically speaking the highest values properties have throughout the year are had. This means that for appraisal purposes, as well as Selling purposes, there is no better time to make this decision as you stand the greatest chance of hitting that 80% Loan-To-Value target or securing the highest price for your home when selling.
The main reason to refinance is either to drop the mortgage insurance premium on your loan, which can save you hundreds of dollars per year, and/or to secure a lower interest payment which too will save you hundreds of dollars per year. Either way, whether thinking of Selling or Refinancing, I am more than happy to be a source of information so don’t hesitate to contact me if you or someone you know is considering either option.
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Author:Patrick Torgrimson Phone: 320-260-8008 Dated: February 19th 2017 Views: 489 About Patrick: My objective is simple; to do for you what I would wish someone in the same position to do for me wh...
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