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Can I refinance my home if I plan to sell it soon?

I think we will be selling the house within the next 12 months. Is it worth to refinance? by AdamPhelps11 from Richmond, Virginia. Jun 4th 2013 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Hi Adam! Unless you are really going to see the benefit of the savings from your refinance, there would not really be a reason to refinance if you know for sure that you are going to sell your home within 12 months. If your plans are flexible and there is a benefit to be rendered, you can always consider this as an option and I'd be happy to go over a number of programs that would likely give you the best savings going forward to consider. Working with someone you Trust and who can understand your situation and goals for the future is a key element you want to consider!

Jun 4th 2013
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

This is a question for you loan officer.. typically, if your plan is to sell in the next year, it probably wont be worth the effort.. closing from start to finish runs 2 to 3 months depending on the type of refinance program your doing.. if you look at your loan amount prior to refinancing and then compare it to your new loan amount, then that should show you how much the refinance is going to cost you.. if you cannot recoup those costs by the time you go to sell, then it's definitely not worth it.. if the 2 amounts are the same, then it would be... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 4th 2013
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Mark Allen (Mallen)
#57 ranked lender in Virginia - 10 contributions

yes you can refinance , you just have to do it prior to listing the home, as to whether or not it will be cost effective, we would need to run the numbers to see,please feel free to contact me directly through my profile if you would like an analysis done

Jun 4th 2013
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Tim Howard (TimHoward)
#75 ranked lender in Ohio - 52 contributions

Depending on the closings costs vs the tangible benefit of refinancing it can take upwards of 2 years or more to break even so if you think you will realistically be out of the home in 12 months it would most likely be unwise to refinance. There are No Costs Options available but the interest rate would be higher and thus reducing tangible benefit. Hope this helps.

Jun 4th 2013
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Jason Vondrak (jvondrak)
#220 ranked lender in California - 1,741 contributions

You want to determine how much it will cost you to refinance (closing costs, appraisal fee, etc.) and how long it will take you to break even with your savings to cover the costs. That will help you determine if refinancing is the right move. Basically, if you will not break even by the time you move within the next 12 months, then there is no benefit to refinancing - it will actually cost you. Start by getting some quotes from some local lenders to determine what rate you can get, how much you can save and how much refinancing will cost you.

Jun 4th 2013
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Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions

Adam -- the question you have raised has had some good answers provided. One thing that has not been mentioned by the other lenders, is that it may be possible that you want to refinance to bring the rate down, and then have the new buyer assume the loan, assuming they meet the lender's criteria. This might become a good selling point if rates are higher in a year than they are now.

Jun 4th 2013
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Raymond Denton (Raymond)
#10 ranked lender in Ohio - 224 contributions

Not unless you need to eliminate some debt.

Jun 4th 2013
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Pete Bass (PeteBass)
#30 ranked lender in Connecticut - 476 contributions

No- Unless you are using equity to take cash out of your home and pay off some existing debt that helps your overall financial situation.If you have not already, you may want to contact a financial advisor to help with a plan of action for the future-Pete

Jun 4th 2013
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Mark Shankle (MarkShankleLoans)
#65 ranked lender in Virginia - 5 contributions

Adam,Yes you can refinance. The question is if you gain benefit from doing so. If you can reduce your monthly even $100 at no cost to you; then that is $1200 to put towards anything else. We offer No Closing cost loans in VA. We specialize in quick turn-around times of 30days or less. Contact me if you wish to discuss your options.

Jun 5th 2013
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Mark Shankle (MarkShankleLoans)
#65 ranked lender in Virginia - 5 contributions

Adam,You should refinance if it is a benefit to you. If you can save $100 a month, then is 12 months you'll have an extra $1200. Just make sure the loan you get does not have an early payment penalty. We offer No Closing cost loans in VA and specialize in quick turn-around times of 30 days or less. Contact me if you want to discuss your options.

Jun 5th 2013
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