Selling Property Outright vs Getting a Cash-Out Refinance: What to Consider
The decision of whether to sell property outright or get a cash-out refinance can be difficult. There are a few things to consider before making a decision.
Selling property outright has some advantages. The seller will receive all of the proceeds from the sale, and will not have to make any monthly payments. There are also no income requirements for selling property outright.
Getting a cash-out refinance also has some advantages. The borrower will usually get a lower interest rate than if they were to get a new loan. They may also be able to avoid private mortgage insurance. There are some income requirements for getting a cash-out refinance, but these vary by lender.
Some things to consider before making a decision are:
-How much equity is in the property?
-What are the current market conditions?
-What are the borrower's goals?
If the borrower has a lot of equity in the property and market conditions are favorable, selling property outright may be the best option. If the borrower wants to keep the property and has good credit, a cash-out refinance may be the best option.