It’s hard to resist the ‘sell your house’ ads or ‘refinance house’ in your mail and also the frustration of mortgage repayments. Keeping up with monthly mortgage repayments can be a tough task. Is getting a new loan to cut down the expenses your next thought? You might want to reconsider your options.

The pandemic had a hard hit on everyone, with people losing jobs and it being tough to manage expenses. Refinancing your mortgage can shorten the life of your current mortgage and also provide lower interest rates. It can significantly lessen your monthly mortgage payment although, selling your home makes more sense if you’re unable to manage the monthly installments. If you are confused between selling your house or refinancing? Choose what is best for you by reading the blog below.

Possible Reasons To Refinance House

Refinancing is a process where you replace your existing mortgage with a new loan. People usually refinance their mortgages to get a new ones for lower interest rates and reduce monthly payments. There are many reasons for homeowners to refinance some of them are listed below.

To Lengthen Or Shorten The Mortgage Term

Refinancing can help you lengthen the mortgage term which allows you extra time to pay off your loan. It also lowers the amount you are entitled to pay every month. Refinancing also helps in shortening the mortgage term. When you increase your monthly payment you repay faster and save the running interest amount. This way you own your house faster and save thousands on interest.

To Change The Structure Of Your Loan

If you have an Adjustable Rate Mortgage (ARM) and you’re past the fixed period, your monthly interest rates may vary significantly. You can refinance the ARM to a fixed-rate loan which will make your monthly repayment and expenses predictable. Changing the structure of your loan gives you control of your monthly expenses.

To Change The Type Of Loan

Homeowners refinance their government-backed loans to a conventional loan as they build equity. If you pay 10% of the down payment for a Federal Housing Administration (FHA) loan, you are entitled to pay the mortgage insurance premium. Although, when you build a 20% equity on the conventional loan, you can get away with private mortgage insurance.

To Cash Out Your Equity

In cash-out refinance you replace your old mortgage with a new one with a higher balance. The difference between the old and new mortgage is paid in cash to the homeowner at many more favorable terms. As these mortgages have higher principal and low-interest rates they can be used for almost anything like paying off debt or getting new purchases. 

Look For Available Options

Consider refinancing as an option but want to sell your house in the coming future. So why not look at some options? Before jumping to conclusions.

Loan Modification

A loan modification is less expensive than refinancing. When you choose to modify the loan your lender agrees to make changes on mutual terms. It consists of changing your monthly repayment amount, interest rates, and your term. In rare cases, the lender might also reduce a chunk of the principal from the amount. So, if you are facing financial difficulties this might be an ideal option for you. 

No-Closing Cost Refinance

While applying for a refinance house, lenders usually offer you a no-closing-cost refinance. By picking this option you merge your closing costs in the principal of the loan. In a no-closing-cost refinance you pay a higher interest rate and pay nothing while closing.

It may sound enticing although, you’d end up paying closing costs on the term of your loan anyway.  However, if you are selling a house early you might only pay a few dollars. A no-closing-cost refinance may be beneficial when you cash out your equity. It provides financial aid if you are selling your distressed home.

Choose To Hold Off On Your Refinance

It is always better to skip a refinance house if you are not planning to stay in it for long. It makes sense to hold off on your refinance when circumstances aren’t much favorable. Calculate the time you’d be living in the house to earn the money back from closing.

How does Refinancing work for your Home?

Refinancing your house involves many of the same steps as buying a home, but the process is often less complicated. While it can be difficult to predict exactly how long your refinance will take, most refinances are completed within 30 to 45 days. During this time, you’ll work with your lender to gather necessary documents and complete any required appraisals or inspections. Ultimately, refinancing can be a great way to lower your monthly mortgage payments or access equity in your home.

Let’s take a look at the process :

Application

Before applying for a refinance, it’s important to research and compare the different types of options available to find the best fit for your financial situation. Once you’ve decided on a lender, they will ask for the same information you provided when you first bought your home, including your income, assets, debt, and credit score. 

• You may need to provide documents such as your two most recent pay stubs, W-2s, and bank statements. 
• If you’re married and live in a community property state, your spouse’s documents may also be required. 
• Self-employed individuals may need to provide additional income documentation, and having your tax returns from the past couple of years on hand is a good idea. 

Keep in mind that you don’t have to refinance with your current lender and it’s important to shop around and compare rates and client satisfaction scores before making a decision.

Deciding Interest Rate 

When refinancing your loan, you may have the option to lock in your interest rate or float it. If you choose to lock in your rate, it means that the interest rate will remain the same until the loan closes. 

On the other hand, if you choose to float your rate, it means that the interest rate may fluctuate until the loan closes. It’s important to consider your financial goals and the current market conditions before making a decision.

Lock-In your Refinance Rates 

When refinancing your mortgage, it’s important to consider locking in your interest rates to avoid any potential market fluctuations. The length of the rate lock period can vary depending on your location, loan type, and lender, typically lasting anywhere from 15 to 60 days. 

Opting for a shorter lock period may result in a better rate, as the lender doesn’t have to hedge against market changes for as long. However, if your loan doesn’t close before the lock period ends, you may need to extend the rate lock, which could come with additional costs.

Float Your Rate before Locking In

When applying for a loan, you may have the option to float your rate instead of locking it in. This means that you don’t commit to a specific rate and instead take the risk of the rate either going up or down. 

While this may result in a lower rate, it also puts you at risk of getting a higher mortgage rate. However, some lenders may offer a float-down option that allows you to take advantage of lower rates if they become available. 

Ultimately, if you’re satisfied with the current rates, it’s generally a good idea to lock in your rate to avoid any potential rate increases.

Mortgage Underwriting

When you apply for a refinance loan, the mortgage underwriting process begins. This involves your lender verifying all of your financial information to ensure its accuracy. 

Additionally, the lender will verify details about the property, including its value, which is determined through an appraisal. The appraisal is a crucial step because it can impact the options available to you. 

For example, if you want to take cash out, the value of your home will determine how much money you can receive. If you’re trying to lower your mortgage payment, the value could impact your eligibility for certain loan options or whether you can get rid of private mortgage insurance.

Home Appraisal

When refinancing your home, it’s important to get an appraisal to determine its current value. Your lender will typically order the appraisal, which involves an appraiser visiting your property and providing an estimate of its worth. 

To ensure a favorable appraisal, it’s recommended that you tidy up your home and make any necessary repairs beforehand. Additionally, creating a list of any upgrades you’ve made to the property since purchasing it can help demonstrate its value.

After a home appraisal, your next steps will depend on the outcome. 

• If the appraisal matches or exceeds the loan amount you’re seeking for a refinance, the underwriting process is complete and your lender will provide details for closing. 
• However, if the appraisal comes back lower than expected, the loan-to-value ratio may be too high for your lender’s requirements. In this case, you can choose to decrease the amount of money you want to refinance, cancel your application, or opt for a cash-in refinance by bringing additional funds to the table to meet the terms of your current deal.

Closing On Your New Loan

After the underwriting and home appraisal are complete, the final step is to close your loan. 

• A few days before closing, your lender will provide you with a Closing Disclosure document that outlines all the final numbers for your loan. 
• The closing process for a refinance is typically faster than for a home purchase and is attended by the people on the loan and title, as well as a representative from the lender or title company. 
• During the closing, you’ll review the loan details and sign the necessary documents. Any closing costs that aren’t included in your loan will need to be paid at this time. 
• If your lender owes you money, such as in a cash-out refinance, you’ll receive the funds after closing. 

Once you’ve closed on your loan, you have a 3-day grace period before you’re locked in. If you need to cancel your refinance, you can exercise your right of rescission during this time.

Frequently asked questions about (FAQs) Refinancing

What is the cost of refinancing?

The cost of refinancing your home loan can vary depending on several factors, such as the lender you choose and the value of your property. Typically, you can expect to pay between 2% to 6% of the total loan amount. 

However, the good news is that you may not have to pay these costs upfront, especially since the adverse market refinance fee has been eliminated. Some lenders offer a no-closing-cost refinance option, which means you won’t have to pay any fees at closing. 

However, keep in mind that you may end up paying a higher interest rate over the life of the loan to cover these costs.

When should I refinance my mortgage?

Deciding when to refinance your mortgage requires careful consideration of various factors. One important factor is the current market trends, including interest rates. Your financial situation, particularly your credit score, is also crucial to consider. 

To determine if refinancing is worth it, use a mortgage refinance calculator to calculate your break-even point after accounting for refinancing expenses. It’s also important to understand how refinancing differs from other mortgage options, such as loan modification and second mortgages.

Is a second mortgage the same thing as refinancing?

It’s important to understand the difference between a second mortgage and refinancing. Refinancing involves replacing your existing mortgage with a new one, resulting in one monthly payment. 

On the other hand, a second mortgage, such as a home equity loan or HELOC, requires an additional monthly payment on top of your original mortgage. While second mortgages may have lower closing costs, they often come with higher interest rates compared to refinancing. 

It’s important to carefully consider your options and choose the financing option that works best for your individual needs.

Can I reduce my monthly mortgage payment without refinancing?

If you’re looking to lower your monthly mortgage payment without going through the process of refinancing, a mortgage recast may be a good option for you. This involves making a large lump-sum payment towards your principal balance, which allows your lender to recalculate your monthly payments based on the new, lower balance. This can be a straightforward way to reduce your monthly payments and make your mortgage more manageable.

How soon after closing can I refinance?

The timing for refinancing after closing on a mortgage varies depending on the type of loan and the investor in your mortgage. Some lenders may allow you to refinance as soon as 30 days after closing, while others may require you to wait 6 months or even a year. 

The frequency of refinancing also depends on factors such as the amount of equity you have built up and your current mortgage balance. It’s important to check with your lender to determine the specific guidelines for refinancing your mortgage.

Will refinancing my home affect my credit?

Refinancing your home can have a temporary impact on your credit score. This is because the lender will need to run a credit check and perform a hard inquiry on your credit history. 

However, as long as you continue to make timely payments on your debts and avoid opening new credit accounts, your credit score should recover within a few months. So, while there may be a short-term dip in your credit score, refinancing your home should not have a significant long-term impact on your credit.

Sell Your Home For Cash  

Refinancing your home may be flexible but in some cases, it may not be an ideal option.  If you are selling your distressed home, refinancing may not be worth it. Selling your home to a cash buyer is a better deal you can sell remodeled houses to Elite Properties New York and avoid the hassles of refinancing. Elite Properties is a ‘we buy houses for cash company’, which means we buy houses in any condition. You can sell your house fast for cash in NY and close the deal in less than a week. We buy property for cash and also pay the closing costs, which allows you to move faster with your plan. Call us today at 718-977-5462 to know more.

We know businesses around the world faced a hard hit due to the COVID-19 pandemic. The real estate market was great to hit & not left behind. Initially, in 2020 the housing market in the United States started with a good strike. Although, amidst March the coronavirus outbreak came into play; everything including job losses, economic slowdown due to closed business, and uncertainty in home sales waved across the nation. With homestay orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices Trend’.

Situations Post Covid-19 Pandemic            

As stated in the first week of April, the statics showed one million-plus positive cases around the globe with constant additions. The crises have impacted the global economy, and the unemployment rates have risen.  According to recent claims, the unemployment rate is approximately 30 million. This becomes the justified reason for the steep economy of the states and affected Real estate Prices Trend.

Regarding the real estate sector, the existing home sales witnessed an approximate 7.2% increase from February 2019 to February 2020 (sources). Furthermore, according to the National Association of Realtors (NAR), the recorded static gain was 6.5% in January and February 2020 combined. A joint report on new home sales from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) stated; that there was a mere drop in home sales by 4.4% since January 2020 (as per the current post-Covid-19 scenario). The home sales report on a year-on-year basis (2019-2020) shows a positive growth although; it started to tumble gradually starting from January 2020.

Housing Inventory Situation

The housing inventory has been quite low. As of February 2020, it went down approximately by 10% on a year-over-year basis. This apparently dropped the supply of housing. As the stay-in-house orders are in the reliving process it is still not possible to choose a house showing or walkthrough service. Although, a great option available for new home buyers is virtual tours. Sources specify the virtual tour requests in April made up one-third of the total requests as compared to the month of March.

A Complete Home Sales Analysis

As mentioned in the previous blogs, the best time to sell a house is from March to Mid-May. The reason being winters are gone and spring blooms, which accelerates the home selling process.  The new listings, as per the pre-COVID scenario were increased by 5% on a year-over-year average. Although the current status of the newly listed properties posts 29th March -5th April has decreased by 34% and 31% on a year-over-year basis (sources).  The percentage stands to be amongst the biggest declinations of this year. If the situation is prolonged, the bar may see a fall in inventory in the coming times.

There are two predominant scenarios in home sales namely V-shaped and U-shaped scenarios. The V-shaped scenario drops in the second quarter and recovers through the summer and the recovery stretches till the end of the year. Whereas, the U-shaped scenario shows the home sales to drop gradually with constant declinations extending through the end of the year 2020.  Not leaving behind, the Coronavirus has Pushed Mortgage Rates Lower, which has also made a great impact on the housing market.

What To Expect From Home Selling Or Buying?

Home selling or buying includes multiple processes to reach the end goal including paperwork, verification process, walkthroughs, etc. As the pandemic is still stagnant in place there are many changes that one has to adapt with respect to real estate.

• If you are looking to sell your house try pushing to the late summer or fall. As per buyers, home prices usually drop in colder months, making it the best time to buy a house.
• The closing process might witness a slowdown. Although, with digital walkthroughs and remote signings are still taking place. If you are a buyer or seller proceeding with transactions can be the best option.
• Use mortgage relief programs if you are a home seller and planning to pay off your mortgage. You may also qualify for mortgage forbearance if you’re unable to repay the monthly installments.

Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties which will help in easy home selling. Also, we buy houses in an as-is condition which avoids the hassles of upkeep and repair without taking into consideration of Real estate Prices Trend. In such tight circumstances the most feasible option is to sell the home for cash with a cash buying company, call us today at 7189775462.

Selling a home is a daunting process, it is said to be a very exhausting period in a homeowner’s life. You need to know how to sell your house fast. The home selling process involves a lot of legal procedures and paperwork, which causes havoc. The whole phase is a combination of financial, physical, and mental concerns that an individual goes through.

In this catastrophic situation, we would like you to find out the 5 do’s and don’ts of selling your house fast.

Significant Do’s and Don’ts of How to Sell Your House Fast

Scroll down below to see the top 5 important do’s and don’ts that will accelerate the home selling process.

1. Repay Debts, Keep Legal Documents In Place

Do’s –

Firstly, it is important to keep your documents in order for the legal processes that will take place in the future. You will need documents like the sale deed, mother deed, and other mandatory documents required for selling the home. Additionally, it is highly advised to repay the outstanding encumbrances, which will help in building trust with the potential buyer.

Don’ts –

If you miss any important document while preparing to sell your house, you might be in big trouble. A missing document will prolong the sale and you won’t receive hefty profits on the property. If you misplace a deed the buyer will propose a lowballed price for your home, which is a big loss. Similarly, if you have any remaining debts, you must clear them off beforehand to obtain a decent credit score.

2. Preparing Your House For Sale

Do’s –

Shabby conditions are not acceptable, you must make the required improvements to convince buyers. There are multiple prerequisites that should be satisfied before you list your house for sale. Basic things like moving the furniture and spacing out the area will do the trick. Decluttering unwanted items will make your home look voluminous and airy, which eventually entices buyers.

Don’ts –

If you are carrying out improvements, you should keep in mind; that overdoing thing will not help. As repairs need a substantial amount of money, it also requires an ample amount of time. It is suggested not to overdo unnecessary repairs or improvements, as it will cost you a handsome amount of money.

3. Market And List Your Home

Do’s –

Marketing can create wonders. If you market a product rightly, it could lead to the right audience. Similarly, as is the case with real estate, if you do appropriate property marketing, it will reach potential buyers. To market, the property start clicking good pictures and writing a realistic description of the house, neighborhood, and nearby places. Furthermore, you can print flyers, post free advertisements online, print advertisements in newspapers, etc. By promoting your house, you are creating a community of buyers that would be interested in buying your property. Stress on promoting your property over the web, around 80% of home searches begin with surfing on the internet, so why not be a part of the digitalization?

Don’ts –

Marketing is to promote a product’s features and make people utilize it. While all this is true, people think fake assembly of descriptions and pictures would entice buyers. Absolutely not, by writing fake descriptions and staging your home, you are creating a fuss for the future. Fraudulent sales are subjected as crime, it is better to portray what is actually yours and keep yourself safe.

While calculating the value of your home, it is essential to set a realistic price for listing. Overpricing your home will lead to a loss and also it won’t lure buyers. Furthermore, do not trust the myth that selling your home in spring is the only option to acquire bigger profits. A potential buyer will buy your house in any condition if he or she likes it.

4. Get In Touch With A Real Estate Agent

Do’s –

Hire a real estate agent who knows the tricks of the trade. Make sure he knows about the locality, neighborhood, recreational areas, comparable properties, etc. A real estate agent will help in evaluating the actual price of your home and make your ship sail smoothly.

Don’ts –

A major mistake that most homeowners make is, that they rely on real estate agents very much. Although trusting isn’t wrong, the blind trust that people put in them could be scary. It is indispensable to conduct simultaneous online research to verify your real estate agent’s evaluations.

A Checklist To Look At, How to Sell Your House Fast

Apart from the given, there are many other aspects that are equally important as the dos and don’ts. We would like to provide you with a checklist that will help you in selling your home fast.

• Take suggestions and feedback from the real estate agent positively
• Calculate the fair market value of your property and then calculate the property’s worth
• Provide walkthroughs for potential buyers
• Do not hand over the original documents before registration
• Consult with companies that buy houses for cash for faster and more profitable deals
• Don’t keep on rescheduling appointments with buyers, they lose interest in the deal
• Repair sewage tanks and pipes
• Light scented candles and put flowers around the corners of your home, as curb appeal is important
• Take care of little things while providing a walkthrough, like keeping your pets out of sight from the buyers. Apparently, everyone is not a pet lover
• Put bright lights in your home so nothing goes unseen or unnoticed
• Don’t let the emotional roller coaster hamper your home sale

Our Concluding Words

While selling your house fast is a strenuous task, the above do’s and don’ts will make the process easier for how to sell your house fast. Keep the mentioned points in mind, rest assured you will close the deal positively. If you are living in New York and suffering from the same problem, get in touch with ‘Elite Properties‘. They moreover help you with other real estate crises and provide precise solutions. If you want to sell your house fast, inherit a home or get in touch with a real estate agent, call on this number 718-977-5462 and get your queries sorted.

Are you in need of some urgent cash and have to sell your house fast to meet the ends? Then, sell your house fast for cash to a real estate company that says We Buy Homes For Cash… 

Most of you might have come across “we buy homes for cash” ads in your day-to-day life. It could be in a flyer, on a banner across the road, or might even be in your inbox as well. Usually, we ignore these ads thinking they are scams and that approaching them might be dangerous. But, what if unexpected financial troubles have caught up and now you are force to sell your house or property? In these situations, you might be looking for a way to get fast cash. This leads you to the doorstep of most of the “we buy houses for cash” companies. Well, the real question is

“How much can you trust these companies and ads”?

Seeing flyers on electricity and telephone poles that read in all bold, “we buy homes for cash” won’t do much of a convincing. But, believe-it-or-not these companies are legit and have a prominent role in the real-estate business. These companies will buy houses slightly under market value. They make the needed repairs and sell the property at a much higher price to get a profit.

How To Find Out the Company You Chose is Legitimate?

It isn’t necessary that every detail on the “we buy houses for cash” flyer is accurate. Before approaching the company to sell your house make sure you aren’t being framed. Here’s how you can find out whether the company you chose is legitimate or not:

1. A Company with a Website: The first step you must take before ringing the company’s phone number is to surf their website. If the Company’s name and logo are displayed on the website, the firm might be legal. It is working under the California online privacy protection act. This will ensure all the details you enter on the website at the time of the query can’t leak to the public or can have access by any third-party company. Make sure to omit the companies that hide their names from the website as it would be difficult to trace them at the time of an issue or conflict.

2. A Company That Displays Contact Information: Contact information is pretty essential. Only choose the company who aren’t ashamed to display their contact information. It would be great if you work with a company that has a dedicated customer service sector. This will make sure you are well informed about the status of the services available.

3. A company with a listing on Multiple Business Listing Sites: Google the company up and check whether they are listed on Business listing sites. These listing sites include Yelp, LinkedIn, Hot Frog, Yellow Pages, and others. A company with a listing on multiple platforms can be of trust to an extent.

4. Check For Positive Reviews: Checking for customer reviews regardless of whether it is positive or negative can tell you a lot about the company and its function. This will also let you know whether the company has any previous recorded issues or conflicts with customers and the market.

Checking all these before trusting or proceeding with the company will ensure that you have a reliable buyer and hassle-free services. A trustworthy real estate company can be the best solution for your fast cash needs if you have a house to sell.

Why You Should Sell Your Home to a “We Buy Houses for All Cash” Company?

1. An Immediate Relief

If you are stuck up in some financial situation and need some urgent money, the only thing you can sell is a house, then this company can be your immediate relief. Their professionals will be evaluating your house or property and will provide you with a no-obligation cash offer. Most of the time the amount they offer will be less than the current market value of the property. But, they’ll make sure the offer is reasonable and digestible for you.

2. Sell Your Distressed Property

If you have a distressed property, then selling it can be one of the hectic and challenging scenarios you have to go through. Finding a proper buyer is easily said than implemented. This is where “we buy houses for cash” companies come in. You can sell your property to these companies. Since it is a distressed property, any offer they put forward can be approachable. But, this doesn’t mean you have no option to negotiate.

3. Save Yourself From a Foreclosure and Short Sales

If you are facing foreclosure, a real estate company that buys houses for cash can aid you. With proper consent from your mortgage dealer, you can sell your house on short sales to the companies mentioned above and save some money for a temporary apartment. 

4. Fast Closings

These companies can close a business deal in a span of time as less than seven days. Since, there are no approved financing, appraised values, inspections, and other things that pop up at the time of selling a house, bypassing all these steps will help in closing a deal faster.

Conclusion

What would you choose, a “We Buy Houses” company or rather wait for a buyer? We buy houses companies are legitimate, and you could easily fill your pockets just in days. Since you have the proper tools and resources now after reading this article, finding a professional company wouldn’t be that hard. But, always know that “We Buy Houses” companies aren’t for every seller.