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Refinance, Sell or Remodel?? I'm so confused!!

Sooner or later, life changes. When it does, we must all make choices. Perhaps you bought your property at the wrong time, and are trying to gain some value through a remodel. Perhaps the family has grown out of the old house, and a decision must be made whether to sell and buy a bigger home, or whether to add on to the existing house. Can you get money out of the equity in your property to do the remodel? Perhaps you just would like to get a lower interest rate than when you first bought. Let's discuss these issues... first, refinancing.

There are costs involved in refinancing your house, and the overall picture must be examined carefully. The issues relating to taxes, how long you will be remaining in your property, how many years you've already paid your mortgage vs. starting with a new 30 year loan... all are factors. A general rule of thumb that is often tossed around is that if you're remaining in your property more than three years, and you can save one percentage point on your interest rate, you should refinance. The fact is, you should always look at the specific facts related to YOUR situation... and throw out all the "general rules"! Pacific Southland will prepare a report analyzing your current loan against other options, and we will always recommend checking with your accountant as well - you need to verify that it makes financial sense - and at the end of the review, you will know with a certainty what action you should take. You, and your property, will BOTH have to qualify in order to refinance, and Pacific Southland will help you determine what your options are. There are unfortunately difficulties in many refinances for two reasons. The first reason is that, although you already have a loan with a higher interest rate you are now paying, you still must qualify for the loan again. The lender will want to be sure your income is high enough to qualify, that your debt ratios are in line with the new tighter regulations, and of course your credit will be examined. The property value is the biggest issue we run into these days, which is troubling to many borrowers. It is hard to understand why a lender won't allow you to simply lower your interest rate to current market, when, after all, you were making the payments on time in the past, regardless of the loan amount. The nation is struggling to work through these problems, and Pacific Southland can guide you through the hoops necessary to help you get into the best position, if it's at all possible. We will go through the options at no cost to you. If you can meet all of the requirements, and you are willing to do a little work (we'll help you to make it as easy as possible!) there is a chance we can help to save you a couple hundred dollars a month or more, and in this economy, you simply can't afford to overlook that.

The decision to remodel or not is more complicated than simply whether it makes financial sense or not. Living through a remodel can be quite an experience for a family. Sometimes it brings a family closer together, but often, it is a relatively trying experience. For those unwilling to tough through it, it is often the right decision to simply sell the old house and buy a larger home. We speak from experience on this topic, with a solid background in residential remodeling. If you decide you'd like to consider the remodeling option, take a look at the Pacific Southland Design web site, and give us a call. There are designers on staff who can come to your home for a free consultation and discuss your situation. Send email by clicking the link, or try the link to go to Pacific Southland Design's homepage... and thank you!