Ways To Sell A House After Cash-Out Refinance

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Selling a house after the mortgage financing is very much possible. But there are times when some special clauses are there to prevent the sale. Without that, there is no issue with the sale of a house. Also, following some rules can make the process easier.

 

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How long after refinancing one can sell the home

You can sell right after you have refinanced the house. But you have to make sure that there is not an owner-occupancy clause in the mortgage contract. It will create a hindrance in the selling process. An owner occupancy requires the owner to stay in the house for 6-12 months after the refinancing. After the time crosses, the owner might face problems in the mortgage company because of the closing. So, not having owner-occupancy is a good thing for selling the house after refinancing.

 

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What is the process

Sometimes you can sell the house just right after the refinancing. Make sure that there is no prepayment penalty clause in the mortgage contract. It requires the new owner to pay the fee based on the outstanding principal. This can increase after time has passed. Just after you are done with the papers, put the house on the market with clear notification regarding the refinance. This is done so buyers can know about the refinance and calculate their deal accordingly. Refinancing your house before selling it will depend on your current situation. If taking the benefit of lower interest rates seems perfect for you, you can take the risk.

 

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