5 Reasons Why it is Better Sell Than Refinance Your Home in Hawaii

Thinking of selling or refinancing in Hawaii?
Sell or refinance your Hawaii home?

If you’re considering refinancing your home in Hawaii, you may find that selling is a better option – naturally, this will be a case by case decision. Let’s dig in further and explore 5 reasons why it may be better to sell than refinance your home in Hawaii.


Equity is the portion of the home you actually own that is free of any mortgage, lien, note, or other legal financial obligation associated with the property. In other words, how much of the property’s value is actually yours once you’ve paid off any debt attached to it. If you own a house worth $700,000 in Honolulu but you have a mortgage of $500,000, then you have $200,000 in equity (that’s before accounting for any costs in selling such as agent fees, title costs, etc.).

Naturally, equity changes over time. Market values go up and down. Properties go in and out of favor depending on buyer preferences, local demographic patterns, zoning changes, that huge Kakaako condo building that went up right next to yours and blocks the Pacific Ocean view you used to have, etc. Also, your debt changes every month you make your regular mortgage payment. Although if you refinance, then that can change your equity considerably. As you can see, there are many factors that make your equity a changing figure.

If you’re currently in a higher equity position than in the past or may be in the future, then perhaps now would be the best time to sell your Hawaii property. Trying to time the market in the future doesn’t always turn out the way you expect, as anyone who remembers 2008 can attest.

If you have low equity or are underwater completely, then talk to us about some other options we have to still buy your property directly from you without any agent or closing fees.

Changing Needs

Perhaps you bought a small starter home in Waianae a few years ago and you find your family has outgrown the home as it currently sits – one kid quickly turned into three (ok, not literally). Often, it is much simpler to upgrade and buy a new home that’s a better fit than to try to build out your current house (permits, contractors, budget, etc). Major remodeling projects often lead to the discovery of serious and extremely expensive issues and can be a big reason why it may be better to sell than refinance your home in Hawaii, especially for older homes. You could not just save money and headaches, but also avoid inspections and appraisals by selling directly to Oahu Home Buyers.

Current Income

Income can change quickly without notice, and you may find yourself carrying the financial burden on a home that is suddenly more than you can afford (hello, Covid fallout). If the change appears to be permanent or at least one to last into the future, you may want to consider selling your house instead of refinancing, which may only prolong the inevitable. This is one reason why it may be better to sell than refinance your home in Hawaii. By selling now instead of hanging on for someday into the future, you can pay off your existing mortgage while stepping into a more affordable property you can continue to grow with.


Often due to circumstances beyond your control (job loss, Covid, medical issues, loss of a family member, divorce), you may find yourself facing serious debt issues – if it hasn’t happened to you, odds are it has to someone you know. For some homeowners, instead of taking on even more debt by refinancing your current mortgage, you may be able to pay off your current debt with enough equity remaining to finance a less expensive home elsewhere. Crippling, stressful debt may mean it is actually better to sell than refinance your home in Hawaii before your credit becomes further affected if it isn’t already. Carrying too much debt can also mean that you may be unable to qualify for more credit or another mortgage. A lender might see this and push you toward exorbitant interest rates, meaning you are actually losing money you could possibly be building in equity over the same time period if you qualified for a less expensive loan.


The long-lasting effects on your credit of late or even missed payments are another reason why it is often better to sell than refinance your home in Hawaii. As time passes and your credit continues to get worse, your credit rating will drop and some of your debtors may increase the interest you are paying on existing lines of credit, credit cards, etc. You might even find yourself facing a possible foreclosure. It is extremely important to face your troubles head-on and act quickly – delaying doesn’t do anything for you except make things worse. Foreclosure can be a devastating experience, both personally and financially, appearing on your credit history for seven years, not to mention all the stress of going through the process itself. Please don’t let this happen to you – talk to us about free alternatives.

The bottom line is, it may be better for you to sell directly to Oahu Home Buyers right now than refinance your home in Hawaii. Whether your reasons are financial, personal, or because your property just isn’t the right home for you anymore, by selling now, you can put yourself in a better spot. By working with Oahu Home Buyers, you can avoid all the question marks of a regular sale since we’re the buyer. Let us take the weight off of your shoulders, ensuring your needs are entirely met in the transaction.

At Oahu Home Buyers, we take the time to listen to you to craft a winning solution to your present needs. The experts at Oahu Home Buyers are always more than happy to explain every step of the direct home sale process. We’ve helped many other people in Hawaii, and not just Oahu, either – we work on Maui, the Big Island – wherever you are. At Oahu Home Buyers we have a team of reliable professionals who can handle everything for you and are readily available to support you from the start through to the final day of closing, every step of the way. Why not let Oahu Home Buyers answer any questions or concerns you may have and help solve your problems? Just send us a message or call Oahu Home Buyers at (808) 333-3677 today!