Selling my house - Can I refinance at the same time?
We put our house on the market a few months ago - no offers yet. We have since found a new house in another area (we have to move there for work). I would like to refinance our current house to lower the payments because paying two mortgages is not fun. Can I refinance if our house is on the market? Any suggestion as to lenders who do this? We have excellent credit - just want to save some money during our transition until the current house sells. Thanks.
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Tags: lenders, money, mortgages, suggestion, transition
July 26th, 2009 at 6:30 am
Many retail regional banks don’t care if your house is on the market or not; Academy Bank, Liberty, TCF, any State Bank, or similar.
Closing costs can be as low as $300.00.
July 26th, 2009 at 6:30 am
You’d be better off lowering your price to sell the house quickly. Each month you continue to make a mortgage payment is money out the door.
July 26th, 2009 at 6:30 am
Usually you can’t because the lender knows that you plan to sale and they don’t want you to pull the equity.
Plus the cost to refin would cost more then the "savings" on a lower payment each month.
July 26th, 2009 at 6:30 am
Theoretically yes. Take the "for sale sign" and any else off the property that MIGHT suggest the property is for sale. A lender may not refi if they know the property is for sale.
July 26th, 2009 at 6:30 am
Banks won’t refinance a house that has been on the MLS or listed with a Realtor.
Keep in mind that information is part of a regular appraisal, and banks require a house to be off the market anywhere from 6 months to a year. Appraisers have access to MLS.
If you have been doing it by FSBO, then you should be fine.
Even if you were allowed to refinance, the prepayment penalty would nix any savings that you would potentially have…it would be like throwing THOUSANDS of dollars in the toilet.
July 26th, 2009 at 6:30 am
If you need money you might consider getting what people call a "bridge" loan. They are short term loans against your old house. They usually balloon in six months or a year and you only pay the interest in the mean time. The interest is higher than a mortgage but it is lower than a credit card.
They call them bridge loans because they are designed to bridge you from one home into the other.
Check with your local bank.