Refinancing your home can be a positive move for many people. Refinancing your home before you sell it can be a great move as well! As long as your home is not listed and on the market yet, you will likely have the ability to refinance. One of the reasons some people like to refinance their home before selling it is so that they can take out some home equity for repairs that need to be made before putting the home on the market.
Keep in mind that there are some clauses and rules you should look out for if you choose to refinance your home and then sell it. For example, some refinance agreements do not allow you to sell your home six to twelve months after you refinance. Each agreement is different so be sure to read the fine print! Some agreements may not even have this clause. Some agreements also have a prepayment penalty. This is something else we recommend you look out for in the fine print.
Another important thing to note is that refinancing is not free of charge. It does indeed cost money. You will want to make sure you do the math and make sure you will not be spending more money on refinancing than the profit of selling your home.
One of the reasons refinancing has been such a hot topic lately is because the refinancing rates are at a historic low. (Just like interest rates.)
If you are not sure what the right move is for you, please give us a call and we will go over all of your options. And as with making any important decision, writing out a pro/con list will be very helpful to you. Also talking to someone who has refinanced is a good idea as well!