When choosing between refinancing or selling, homeowners should assess their financial situation, current market conditions, and long-term personal goals. Here’s a breakdown to help with the decision:
Refinancing
Refinancing means replacing your existing mortgage with a new loan—often to take advantage of better terms.
Pros:
Lower interest rates, potentially reducing monthly payments
- Access cash for renovations or major expenses
Cons:
- May extend the loan term
- Could lead to higher overall costs or fees
Selling
Selling your home might be the better option if you’re seeking a lifestyle change, market conditions are favorable, or your financial goals have shifted.
Considerations:
Current home value and buyer demand
- Costs involved in selling and relocating
- Potential profit versus staying in place
Before deciding, it’s wise to speak with a financial advisor or real estate expert to align your choice with your goals.