Overvalued homeowners choose to refinance when they cannot afford to buy


SPOKANE VALLEY, Washington – It is usually easier for current homeowners to buy their next home. However, this current housing market has priced a lot of people out and frustrated them with how competitive it is. Some find the light at the end of the tunnel through the refinancing.

Redfin recently ranked Spokane as the best city for bidding wars on houses in the country. Over 86% of the apartments had several offers. This drives up prices and prevents many from getting their offers accepted. This is exactly what happened to the Williams family, who searched for over eight months.

“The fact that everything was being pulled further and further away from us, we felt like we were being pulled away again and again, we just lost hope,” said Arianna Williams. They have lived in their current home for six years and their family has grown quite a bit, which makes the home a bit small for everyone.

“We really enjoyed this house from the start,” she said. “We really outgrew our home so we looked around the market to find something bigger for our family.”

Williams had lost hope of finding something new until her brother suggested refinancing.

“When we heard that interest rates were lower, that was a lightbulb to us and we thought we could refinance for now,” Williams said.

They do just that by making their current home suitable for their family with a lower interest rate and more flexibility. They plan to add an addition and modernize some of the features. In the future, they hope that this will increase the value of their home when they can move.

“Now is actually a perfect time to take the equity out of your home and do the new addition to your home you wanted or turn your backyard into your own little oasis,” said Jared Wash, Senior Residential Loan Officer with the Wheatland Bank.

He says interest rates are historically low and can help you in the long run. Here are some tips to keep in mind when considering refinancing:

  • Do you know what you want to achieve with the refinancing. Would you like to reduce your mortgage, pay off debts or improve your home?
  • Have all of your tax returns, W2’s, pay slips, and bank statements handy when you meet with a lender.

The Williams family now has a renewed sense of hope with the decision to refinance, saying that other families could benefit from the decision if they are priced too now.

“I think when you’ve lost hope and it’s really okay to stay where you are,” she said. “There are things you can do to make yourself happier where you are, definitely refinance.”

RELATED: How to Manage Spokane’s Hot Housing Market

Source link


About Author

Leave A Reply