I bought my condo in North Austin 2 years ago. How do I know when it’s a good time to sell and buy a home? Or, in the interim, how do I know if I should refinance? – Madeyline
Thanks for your question. As we all know the real estate market fluctuates as do reasons for buying a selling. It costs money to buy and sell, so some people want to make sure they are getting a good deal. Since you purchased 2 years ago, you probably haven’t gained much equity. It usually takes several years before a home has gained enough equity to turn around and sell. Of course, this depends on when a home was purchased, where it is, etc. You will probably want to stay for another couple of years in order to gain some equity. Now this would not be the case if you have just won the lottery!
Which brings us to a good point about refinancing. Again, it costs money to refinance a home, so you will want to weigh how much money you are saving per month vs how much it is costing you to refinance. For example, let’s say that your mortgage payment is $1000 per month. Your refinance could cost $2000 and will bring your payment down to $900 per month. Therefore, you are saving $100 per month on your mortgage. It will take you 20 months to recoup the amount of money it cost you to refi. If you are planning on staying in the property for 20+ months, it would be a good idea to refinance. If you are planning on selling before then, you should hold tight.
