Selling property outright vs. getting a second mortgage vs. getting a cash-out refinance: what to consider
When it comes time to sell your property, you have a few options. You can sell it outright, get a second mortgage, or get a cash-out refinance. Each option has its own pros and cons that you should consider before making a decision.
Selling property outright:
If you sell your property outright, you will have no remaining debt on the property. This can be a good option if you are looking to move and do not want to worry about making monthly mortgage payments. However, you may not get as much money for your property if you sell it outright since buyers will know that they are getting the property free and clear of any debt.
Getting a second mortgage:
If you take out a second mortgage on your property, you will still have some debt remaining on the property after the sale. This can be a good option if you want to get more money for your property since buyers will know that they are not getting the property completely free and clear. However, you will still be responsible for making monthly mortgage payments on the property until the debt is paid off.
Getting a cash-out refinance:
If you get a cash-out refinance, you will be able to borrow against the equity in your home and get cash back at closing. This can be a good option if you need to raise cash quickly or if you want to consolidate other debts into one monthly payment. However, you will still be responsible for making monthly mortgage payments on the property and you may end up owing more money on the property than it is worth if the market value of your home decreases.