You always hear people say that you need to refinance whenever the time is right for you. Well, it is often times hard to judge when that right time is. So refinancing is not something you would want to take lightly. But then what should you do if you only plan on staying in your home for one more year? Is it worth it to refinance then? What is your best plan of attack in this situation? Find out more on how you can maximize this situation to work out best for you.
Is Refinancing Worth My Time?
If you want to refinance so that you can maximize your cash, then you may want to think again. Refinancing is good for long term situations, but just for a year is not the best. It really is not something that makes solid financial sense. It may take longer than you would like in order to make up for those closing costs. The main thing is to get rid of your paying, not take on something that may add to the burden.
If this is something you really feel like you need to do, then make sure you review it with a tax professional. They are better equipped to assess this situation. They will help by crunching the numbers, and setting out what the potential payments and downfalls would be. They can also give you more suggestions on how to find lost money within this house of yours.
Making Money Off of the House
If you are getting rid of the house in one year, then it is probably not best to spend a lot of time, money and energy to save a few extra dollars. You should look to spend more of that time on the place you will be living it. Any money you hope to save with the current house should be factored into the new house. Saving money on your long term investment is a safer thing to do. You can also look into renting your current house, if you choose to keep it. That is how you can find more money. It may make financial sense, if the real estate in your area has seen a rise. Dont worry about casting your old home away, when you may be able to make some money to help pay for your new home.
Spend Your Time Wisely
In general, your time is best spent on the long term. Focusing on saving money in the short term is nice, but it can be misguided. Some of the ways you save short term are different than long term, and can backfire. You want to find yourself in a good financial place in the future. That means you may be safe and better off by taking a small hit for the next year. If that is something you really cannot afford to do then that is alright. Get with a professional who can help manage your finances with you. Then you will have a set plan that can help you better then if you went at it alone.
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[Source: Mortgage Blog]
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