Lake Oswego Real Estate Refinancing Woes When Selling

There has been a trend in our Portland real estate market that as Real Estate Agents we have been seeing lately, but there has been little to no press covering this.  Will this trend continue?

Using All Your Equity When Refinancing

Lately we are seeing Sellers who have refinanced their homes in the past several years when the appreciation rate was at high percentages.  However, the market has slowed down.  Now many of those same homeowners are wanting to sell and they have little to no equity left in their homes due to refinancing.

Homeowners perhaps thought since the real estate market had been going up and up, it would continue to increase. They now have cashed out their equity and in many cases cannot afford to sell.

Some homeowners perhaps thought they would pull equity from their homes with the expectation that we would continue seeing increases at 9% a year forever.  They used their equity to pay off bills or buy things that had little to no value and definitely no return on their investment.

Interest Rates

Interest rates are still low.  If you are considering refinancing, consider your family’s long-range goals.  If you plan on staying in your home for a short time – under 3-5 years – it may not be the smartest choice to refinance. Courtesy Mike Popnoe, Sierra Pacific Mortgage

Many homeowners have gained considerable equity due to those higher appreciation rates but if you are wanting to move and purchase another home, you will need all that unearned equity you have gained.

Granted there are times you might really need to refinance – if you have a high interest rate loan and you want to reduce your payments.  Perhaps you want to buy investment properties or a vacation home where you want to retire.

Too many people are living paycheck to paycheck and may need to cash in some of their equity.  But if you plan to sell and move within the next few years, rethink tapping into your equity as it could hurt you when time to sell.

Thinking of Selling Your Lake Oswego Home?

Prices are still increasing in Lake Oswego. Interest rates are are still low and there is still buyer demand. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.


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Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2019. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.