Initially, you might think this is an odd question. Depending on your situation, it should be clear whether to refinance your mortgage or buy a new home, right?
In fact, there are three common scenarios where either a home purchase OR a refinance could be the ticket to a bright future. These three scenarios are:
- You own a starter home and your family is growing.
- Due to unforeseen expenses or a job loss, your finances have changed.
- You’ve built up a ton of equity and don’t know what to do with it.
If one of these scenarios sounds like your situation, then you’ll want to check out our practical “To Buy, or Not to Buy (And Stay in Your Home)” guide right now!
This resource will help you decide whether you should move to a new home or stay in your current one with a mortgage refinance or cash-out refi.
Here’s a look at the first scenario we highlight in the guide…
Outgrowing Your Home
This often happens if you’re a family living in a starter home. Sometimes a new baby (or more!) arrives and just like that, the house feels a lot smaller than it used to. Or maybe your elderly parents or other relatives move in with you and everyone needs more room.
This is a classic “to buy, or not to buy a new home” decision – and both choices have their advantages. If you weren’t planning on staying in your home much longer, then selling your starter home and buying a new house could be the way to go.
You can also consider getting a cash-out refi to pay for home additions and renovations to give your family more living space. One benefit of this choice is that it can add significant value to your house.
To learn about all three refi vs. purchase scenarios (a growing family, a change in finances, or sitting on equity), click on the family below to download the full guide!