Written by: writer1294

When times get financially tight, it is typical for homeowners to consider refinancing or selling their homes.

Refinancing a home could provide needed cash to get through difficult times. Selling a home and becoming a renter could be a good strategy too. The difference between the idea of “refinance house” or “sell house” is huge. Knowing the pros and cons of doing each will help a homeowner understand which decision is right for them.

Refinance House


One of the best benefits of refinancing a mortgage is the lower interest rate. Today, interest rates are at the lowest that they have ever been. A $250,000 mortgage loan with a 6% interest rate can be refinanced at low-interest rate levels of 4% saving $300 in monthly interest. Homeowners should consider that they can refinance to save money on interest.

Refinancing also means checking available options. A lot of homeowners overlook the possibility of refinancing under another lending arrangement. Homeowners should consider an adjustable-rate mortgage instead of a fixed-rate mortgage. This mortgage allows the homeowner to realized the benefit of having a low-interest rate for the first few years of the mortgage term. The rate then increases to a benchmark index like LIBOR afterward.

One benefit to refinancing a mortgage is the ability to take out the equity in a home. The equity in the home is the difference between what the house is worth and the balance of the loan. Increasing the amount of the loan to the value of the home will give the homeowner a much-needed check for the difference.

However, the amount of the difference must be paid back over the life of the loan.


Applying for refinancing comes with a cost. The cost of the refinancing includes mortgage origination, processing, and bank fees. This cost could add up to almost $1,000. Considering this, along with the fact that the homeowner is not guaranteed a better rate. The bank may request paycheck stubs, tax returns, and credit scores. If any of these have changed significantly the bank may not provide an adequate refinancing agreement.

Another set back for homeowners is the possibility of a low ball appraisal of the home. Appraisers are used to assess the overall value of the house when a mortgage lending agreement is considered. The appraiser finds valuable information such as recent sales of comparable homes in the area of the home.

To get a refinancing, the home must have equity. However, if the appraiser does not believe that the house has equity, based on recent data, then the homeowner might be left with the cost of refinancing with no refinancing from the bank.

Sell House


Homeowners can sell their home and gain the equity of the home upon completion of the sale. The homeowner has complete control over the sale of the home, including selling the house without a real estate agent. The homeowner can benefit from the sale of the home by not paying expensive repair, mortgage lending, and maintenance costs of the property. The homeowner will benefit from finding adequate low-cost rentals in the area that satisfy their needs.


Homeowners should hire a real estate agent at a reasonable commission rate. The real estate agent could charge a percentage of the home value. This cost is one of the most substantial expenses that will be considered when selling a home. However, real estate agents are good at qualifying buyers, attracting buyers, and are focused on selling the house at the highest price.

To bypass hiring a real estate agent, the homeowner should consider third party buyers who can buy the property quickly without a lot of hassle. An excellent example of a third party buyer is Titan Home Buyers. They can buy a home in any situation and condition fast.

Selling a home can be financially distressing. The house itself is a wealth generator because the asset, on average, will increase in value every year. Having the home and a mortgage will help the homeowner increase the tax benefit too. Selling the house will have a detrimental effect on overall wealth.


Refinancing a home versus selling a home is a difficult decision to make. Refinancing a home does come with its bank costs and fees. But this option keeps the house. Selling a home involves liquidating the value of the home, paying off the mortgage, and realizing the benefits of renting over having the property. Renting could be a better option than having the house.

Consider Titan Home Buyers instead of a real estate agent to sell the home. Visit our website at www.titanhomebuyers.com to get an offer today or call 843-804-6629.