Is it ok to refinance a home and than sell it in a few months?

Fred
If I refinance my house today, I a can save $200 dollars a month. But, my wife thinks it will be better to sell the house now, since we really can not afford the monthly payments.

Danyel
Look at the cash flow of each decision. To refinance, it is going to cost you money in closing costs (points, fees, lawyers) and as you noted a savings in monthly payments ($200). So how many months is it going to take to recoup your closing costs. If you stay in the house longer then you will be saving money.One problem I see, is where are you going to find a bank to refinance if you cannot afford the payments.depends on where you are and the house, but it could take you 6 months to a year to sell. And is the market such that you will sell at a price to cover your morgage?

Boyce
If you can refinance, do it. House prices are declining, mortgage money is hard to obtain, and in many areas of the country it is very difficult to sell. If you refi and then get lucky enough to find a buyer, you'll pay off the mortgage at closing. If you don't find a buyer anytime soon, you'll have a lower housing cost in the meantime.

Alysha
It will cost you to refinance, so the question is how quickly can you sell the house. Otherwise, the $200 a month savings is meaningless.