If you refinance your home loan, you can reduce your rate and have to pay a lesser monthly payment.
Some Important Questions Related to Refinance Your Home Equity Loan
Is It Possible To Refinance Your Home Equity Loan?
Yes, it is possible to refinance a home equity loan just like any other loan. Start with applying for a new loan, and pay off the existing one with the new one. The new loan will come with a low interest rate; hence you will have access to more cash.
What Is Required For Refinancing A Home Equity Loan?
First, you have to meet all the requirements for refinancing. Most of the common requirements are the same across all the loan institutions, but there may also be some variations. Along with that, another element that plays a vital role in your home’s loan-to-value ratio.
Why Do People Usually Prefer To Refinance A Home Equity Loan?
The most common reason is it helps you save on interest amounts and reduce your monthly payments. There are more reasons too, such as:
- You can change your loan terms
- Have more cash in hand for other home-related activities.
What Are Some Disadvantages Of Refinancing A Home Equity Loan?
Like everything, there are risks too:
- Your home is used as a security
- You may end up paying more than you could have
There are many hidden costs that you have missed seeing that can be an expensive bet for you.
People often ask how soon they can sell the house after buying it. And the shortest answer is “immediately.” The day you buy your house, you can sell it then and there, and nobody will raise any questions. But selling it too early may cause you to lose money and pay more taxes and other payment penalties. So, when to sell without losing money?
A home can be the biggest financial investment, and nobody would want to sell it without gaining enough equity. However, unexpected circumstances can arise and force you to move from your dream house.
Reasons Behind Selling A House Shortly After Buying
Financial, personal or professional reasons can turn the tables upside down, and you may end up selling the house soon after buying it. Here are some of the reasons why homeowners sell sooner than anticipated:
- Personal Responsibilities: You may want to give more time to your sick parent or child
- Dream Job: Maybe your current job is demanding you to relocate, or you finally found your dream job that you can’t resist taking.
- Emergencies: Sudden medical bills may require you to sell your house
- Relationship: People often sell or purchase new places after marriage or divorce
- Neighborhood: A noisy neighborhood or increase in crime rate may force you to sell your home
How Soon Can I Sell My House After Buying It Without Losing Money?
If you are selling your house after keeping it for a year, renting in the first place would have been a better call. Even though you can get the same amount, how would you compensate for the associated costs, including the price for moving the furniture and any damages, and homeowners association fees?
The best time to sell a house is when you reach the breakeven horizon. This is the point when you can sell your home and redeem all the money spent on additional costs. In most cases, the breakeven horizon comes after two years when it’s safe to sell the house without losing any money. How soon can you sell your house after purchase is at least 24 months when you hit the breakeven point.
Can You Ever Benefit From Selling Fast?
In some cases, it’s possible to make a profitable deal, selling earlier than the breakeven point comes. The few possibilities are:
- House flipping: You made significant renovations to your home that helped increase your home’s resale value.
- There was a sudden increase in the home values of your neighborhood due to a big firm moving in your area, improved job market, or development in the area.
- You got your hands on a really good deal. This can happen if you bought the home in a short sale, and selling it in the right situations is now earning you money.
No matter how positive the situation may look, there can be hidden taxes or other expenses that might incur if you sell your house too soon. Therefore, always take help from an experienced real estate agent before jumping on any decision.
In case you have bought a house and are planning to flip it, we can grant a house flipping loan. For more details, call Red Door Funding at 832-539-1099.
When it’s time to sell your house to a friend or a family member, a great risk lingers around the corner. It’s essential to follow a neutral approach to prevent your personal relationship from damaging a critical and smart financial step. If you don’t want to ruin your friendship, follow the tips on how to sell your house to a friend.
We all know that selling a house is a strenuous task and requires immense time, patience, and energy. At this time, you must be thinking if you sell your house to a friend or family member, it will lessen the burden. Though you’re right to some extent, there will be different hurdles that you’ll have to pass.
Since the transaction is going on a personal scale, you might think you don’t need a real estate agent to close the deal. However, this can be a huge mistake!
Even among the closest of friends, disputes can arise, and here an agent can act as a third party to help resolve the issues before things run out of hand.
Are You Selling Your House To A Friend? Work With A Real Estate Agent
Working with an agent will minimize the chances of problems occurring soon or sometime after the deal. When it comes to friendship and business, never mix them up. Purchase a legal contract covering all the necessary aspects, including down payment requirements, escrow deposits, and the sales price.
Though you can draft a purchase contract looking at tons of information online, it can’t guarantee you specific details and clauses. You and your friend or relative can discuss with the agent can prepare the contract accordingly.
It’s nothing odd to reduce the price of your house for a friend. You can offer a discount on the selling price, but it can create trouble if you make it too low compared to the market value. Too much discount can irritate the Internal Revenue Service (IRS), and you’ll have to pay a certain amount of tax.
The Most Important Part.
The most ignored, yet the most crucial aspect of this scenario is a home inspection. A home inspection is necessary to uncover any hidden fault that may not be visible to the naked eye. Your friend must have visited your house a thousand times before, but some problems don’t appear unless a detailed inspection is carried out. If your friend finds out about any damages, it could deteriorate your friendship as it may seem that you intentionally hid the faults.
Another important thing to consider is the home inspection by mortgage lenders before the approval of financing. The mortgage lender also needs an appraisal; therefore, you should get your home ready in a way you would do if you had it listed on the open market. The value quoted by an appraiser directly affects the buyer’s ability to qualify for financing. Once the appraised value is disclosed, set a sales price.
If you wish to learn more about this topic or looking for home loans, contact the experts at Red Door Funding. Call us today at 832-539-1099.
Let’s talk about an ideal scenario: The weather is perfect, your job is going great, you’re satisfied with your neighbor’s new puppy. But your kid’s daily fight over sharing a bed of two between three, and now each want their separate room and some privacy. So, what to do now? Talk to your children about managing the circumstances. Would they understand? No, they are kids. Moving to a bigger place might be the best option you have now. You are planning to buy a new house, but of course, haven’t sold your current one yet. Purchasing a new house before selling the old one might not be a good idea, especially in today’s real estate market.
The best strategy is selling your current house, renting for the time being, then planning to buy your new dream house with enough rooms to make your kids happy. This approach makes you stable, both financially and emotionally. You won’t have any mortgage on an empty house; by taking things slowly, you will find a reasonable selling price, and in the end, have a topped up bank account.
However, an ideal scenario is not always possible, and you may have to buy a house when you haven’t sold yours. Here are 3 approaches to help you get out of this hamster wheel.
How To Buy A House When You Haven’t Sold Your Existing One
Rent Your Now Sold Existing House
This is, by far, one of the best strategies you can opt for. Firstly, sell your house to the new owners, and then ask them to rent it to you until you make your new house’s complete payments. This type of rent-agreement only stays put for one or two months. This approach saves you the trouble of finding and making agreements for renting a temporary residence. Your existing home is well known to you, and any trouble with it will not bother you a lot. But in case you rent some other place, and in a panic condition, you will never know if it has leaky pipelines, a blocked gutter, or malfunctioning electric circuits. And spending money on these fixtures seems no good.
Going With Temporary Residence
Chartering your old house is not always possible, so you may have to find another place to stay. This option isn’t that easy and economical, but it is a good short-term solution. Let’s suppose your new house needs some cabinetry work, or some electrical or sanitary issues require your attention. Rent a property and stay with ease until your renovation work gets completed.
Make Up A Contingency Plan
Including a contingency plan is a good way of keeping a safe side. When you are getting ready, the contract of your new home includes a contingency offer. A contingent sale plan provides room to holdback an offer if your current house doesn’t sell within a specific time frame or date.
If you ever need to buy a new house before selling your current one, consider the above and other possible approaches such as rental property loans and then choose one that suits you best. Our agents at Reddoor Funding can help you decide and follow the most practical approach. Get in touch with us today at 832-539-1099.
Property flippers often wonder: How soon can I sell my house after purchase? This question can get complicated. Homeowners not only worry about property laws but also about home value. When are they legally allowed to sell? And when is the best time to sell? We will answer both of these questions below.
How Soon Can I Sell My House After Purchase?
Here is the simple answer: you can sell your house right after purchasing. Of course, there is no legal requirement that you stay. While property laws are often complicated, this one fact is pretty simple. After all, it’s your purchase. You can decide what you do with it.
Is Now The Right Time?
Here is where things get a little trickier. Yes, you can sell your house immediately after purchase. However, most experts advise against this. Selling a house too quickly is not always a smart financial move. Plus, the process is often more stress than it is worth.
Reasons Many Homeowners Wait
If you wait to sell your house, then you will hopefully be able to build some equity and make more money on your initial purchase. Living in the home for at least two years will also allow you to exclude some of your profits from your taxes. Many buyers also like to take their time to study the housing market. This can help you make the best financial decisions in the long run.
Ready to Start House Flipping?
Investing in real estate is exciting, whether you choose to sell immediately or not. Flipping houses is a creative- and lucrative- way to give back to your community. Best of all? Getting started is easier than you think! Red Door Funding offers loans to help investors purchase their dream properties. Explore our website to learn more about our loan programs.