Our lives are constantly changing and in a state of flux. Our children grow up and move out of the house, or maybe mom moves in under our care. The beauty of this change of pace keeps our lives from being stale, but it does present us with several questions.
If your family has grown, and you’re running out of room, the decision to upsize may be pretty clear. For most of us, our finances could use some slack, and if you have the extra room to spare, the choice may not be so clear.
The most impactful options, when it comes to saving money on your home, are refinancing your mortgage or downsizing your home.
Which is best for you?
Deciding which route to take has a lot to do with your lifestyle and what quality of life you want to keep. If you have fallen in love with your home, whether it is for nostalgic reasons, the location, or something else, and the thought of leaving is too much to bear, there is still hope!
If you have no intention of leaving your nest, consider refinancing your mortgage. This can be especially helpful if you currently have an Adjustable Rate Mortgage (ARM) or if the rates are substantially lower than when you initially purchased your home.
If your situation is a little more dire, you can consider opting for Cash-Out refinancing, which allows homeowners to consolidate non-mortgage debt in a new mortgage, making it easier to make monthly payments without allowing accounts to fall into delinquency.
Moving to a similar home may not have as much of a positive impact; however, most homeowners who aren’t as attached to their home can see a huge benefit from downsizing to a smaller space. Make sure to factor in closing costs, down payment, and current mortgage rates.
There are many factors that can change how effective these solutions are, so it is always best to consult me when thinking about which route you want to take. I may even know of a better choice! Contact me today for a complimentary mortgage analysis. I am here to help you!