Megan Woissol | November 11, 2021
Let’s find out, and review your financial options based on your score.
- Your commute is worse than you expected (1 point)
- There is too much highway or traffic noise (1 point)
- You don’t get along with your neighbors (2 points)
- You don’t have enough storage space (2 points)
- There is too much space to clean (1 point)
- The space gets cluttered easily (1 point)
- The space is dated and needs renovations (3 points)
- Your family has grown a lot since you bought your home (3 points)
- Maintenance and repair costs are mounting (3 points)
- You have physically difficulty maneuvering around your home (3 points)
- The yard is too small (1 point)
- You are an empty nester with many empty rooms (2 point)
- There is not enough space to entertain (2 points)
Now let’s tally up your score.
If you have 0-5 points, you are happy in your home aside from a couple small inconveniences. For the most part, the home you bought is still a good fit for you and is a space you still enjoy. Your concerns are minor.
Option: Refinance
People who are happy in their home have very little reason to sell. However, they may be well served by refinancing their mortgage loan. Refinancing into a lower interest rate or different loan type can free up money every month. For those with zero concerns in their home, this can mean enjoying their home and saving money, too. For those who have minor concerns within the home, the savings can be reallocated toward updates or additions in the home.
If you have 6-12 points, you have some concerns about your home that may or may not be a deal breaker.
Option: Refinance, Cash-out Refinance, or Sell
If your score falls into this category, you can choose to refinance your loan or sell the home in order to buy another.
Refinancing is a great option because it can lower your monthly mortgage payment, allowing extra funds for home improvement tasks or repairs. If you have equity in your home, a cash-out refinance may provide a lump sum of cash for upgrades. Another option if you have equity in your home is selling it. In the current Colorado Springs market, homes do not need to be in perfect condition to sell for above market value, which means you may be able to sell your home without having to make any updates or repairs.
On the flip side, rising interest rates mean that a refinance may not save you as much money as you expect.
If you scored 13-24 points, your home has some serious drawbacks. Perhaps it is too small, too big to care for, or needs too many upgrades. Whatever the reason, your concerns about your home may be overwhelming or expensive.
Option: Sell
Some problems (such as the need to upsize or downsize) cannot be solved by refinancing. Other problems, like upgrades or renovations, may be too costly for refinancing to make a difference. If your score falls in this category, you might benefit from purchasing a different residence. The current housing market in Colorado Springs favors sellers, so you may not even need to do much to your home in order to sell it for at or above market value.
If you have questions about your options for securing a new mortgage loan or refinancing your current one, we recommend contacting a mortgage broker. A mortgage broker can connect you with a real estate agent and together, they can discuss your specific situation and the options available to you.
