If you find yourself in a situation where you’ll have an extra home you won’t be living in, and assuming it’s safe to inhabit and can be spruced up without too much investment, what should you do? I’ve been there a couple of times due to job changes. Here’s how I dealt with it.
Two main factors, of course, are usually financial: How long and secure is the financing (if any), and what’s the expected cash flow?
When Would You Need the Money?
Do you have a lot of equity tied up in the home, and how soon will you need the money? My time line has so far been indefinite so there has not been a need to sell.
Most residential mortgages are backed by Freddie Mac or Fannie Mae with decent interest rates fixed for 15 or 30 years (who else could or would give such a sweet deal?) so that’s as straightforward as it gets.
If you have a floating or adjustable rate mortgage you might want to consider getting out of that loan whether by selling or refinancing, especially if it’s due for an adjustment soon.
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