HomeBlogPersonal FinanceRefinance or Sell: How to Tell Which One Fits Share on Like what you see? Share with a friend. Refinance or Sell: How to Tell Which One Fits Chris Kirshenboim | October 27, 2022 Last updated August 10, 2026 Refinance or sell is a math question first and a life question second. Choosing to refinance your home makes sense when you plan to stay put, the rate genuinely improves, and the closing costs earn themselves back before you move. It stops making sense when the payment is not the real problem. If the house needs work you cannot fund, if it came to you through a death in the family, or if you are already carrying two mortgages, a lower rate only makes an uncomfortable situation last longer. Running it both ways takes an afternoon. Add up what a refinance costs across the years you would actually stay, then set that against what the house would bring if you sold it as it stands. If selling wins, see how we buy houses and get a number to compare, or read the reviews from owners who weighed the same two options. Take as long as you need with it. Equity Equity is the portion of the home you actually own that is free of any mortgage note or other legal financial obligation associated with the property. The exit strategy for any property should be considered at the time of purchase. It is wise to update your exit strategy based on the current market, moving when the price is at a high, in this way, you can reap the most advantage from the equity you have built up over time. Hesitating or holding out for a better price could allow the opportune moment to pass buy and mean you are actually losing equity, this is a significant reason why it is often better to sell than refinance your home in St. Louis Changing Needs Perhaps you bought a starter home and you find you and your family have outgrown the property as it currently sits. Often, it is much simpler to buy a new home that is built to suit your needs than to attempt to renovate or make additions to your current property. Major remodeling projects often lead to the discovery of serious and extremely expensive issues and is a huge reason why it is better to sell than refinance your home in St. Louis, especially on homes that are older or in a state of disrepair. You could literally save thousands of dollars and months of time by moving upward and onward to begin with. You can avoid inspections and appraisals by selling directly to Chris Buys Homes in St. Louis. Current Income Income can change unexpectedly, and you may find yourself carrying the financial burden on a home that is suddenly more than you can afford. If the change appears to be permanent, you may want to consider selling instead of refinancing, which may only prolong the inevitable. This is one reason why it is better to sell than refinance your home in St. Louis. By selling now, you can pay off your existing mortgage while stepping into a more affordable property. This will also lower your annual property taxes, saving you even more money over the long term. Debt Often due to circumstances beyond your control, you may find yourself facing serious debt issues. For some homeowners, instead of taking on more debt by refinancing, you may be able to settle your debt with enough equity remaining to finance a less expensive housing option. Overwhelming debt may mean it is actually better to sell than refinance your home in St. Louis before your credit becomes adversely affected. Carrying too much debt can also mean that you may be unable to qualify for more credit. Should a lender take the risk and approve you for a loan, it is likely that you will be paying exorbitant interests, meaning you are actually losing any money you could possibly build in equity over the same time period. Credit The long-lasting effects on your credit of late or even missed payments are another reason why it is often better to sell than refinance your home in St. Louis. As time passes and your credit worsens, your credit rating will drop and some of your debtors may increase the interest you are paying on existing lines of credit. Especially if you find yourself nearing foreclosure. It is extremely important to face your troubles head-on and act quickly. Foreclosure can be a devastating experience, both personally and financially, appearing on your credit history for seven years. The bottom line is, it may be better for you to sell directly to Chris Buys Homes in St. Louis right now than refinance your home in St. Louis. Whether your reasons are financial or because your property just isn’t the right home for you any longer, by selling now, you will end up ahead of the game. By working with Chris Buys Homes in St. Louis, there is no lingering around, waiting for the right buyer with the right offer. Let a professional from Chris Buys Homes in St. Louis take the weight off of your shoulders, ensuring your needs are met in the transaction. At Chris Buys Homes in St. Louis, we take the time to listen and are willing to meet your needs. The experts at Chris Buys Homes in St. Louis are always more than happy to explain every step of the process. We've helped many other people through this process. At Chris Buys Homes in St. Louis we have a team of reliable professionals who can handle everything for you and are readily available to support you from the start through to the final day of closing. Why not let Chris Buys Homes in St. Louis answer any questions or concerns you may have and help solve your problems? Just send us a message or call Chris Buys Homes in St. Louis at (314) 334-1481 today! FAQs Frequently Asked Questions Does refinancing reset my loan term? + Usually it does. A fresh thirty-year note starts the clock over, which can lower the monthly payment while raising the total you pay across the life of the loan. Can I refinance a house I inherited? + Sometimes, once title is in your name and probate has cleared. Lenders want proof of ownership and income from you personally, which is one reason many heirs sell instead. What if I owe more than the house is worth? + A refinance is unlikely to help in that position. Ask your lender about a modification, and get a current offer on the house so you know the size of the real gap first.
