Should You Sell Your Las Vegas Home or Refinance?

by Ryan Rose

You need cash, or your current mortgage situation is not working. You are weighing two options: sell the home and access all your equity, or refinance and tap some equity while keeping the property. This is a significant financial decision with long-term implications. Here is how to think through your options.

Understanding Your Options

Selling means converting your entire equity position to cash, minus selling costs. You walk away with a lump sum but give up ownership and must find somewhere else to live.

Refinancing means replacing your current mortgage with a new one, potentially with different terms or a higher balance that gives you cash out. You keep the home but take on new debt.

Consideration	Selling	Refinancing
Access to equity	Full equity minus costs	Partial (typically up to 80% LTV)
Ongoing costs	None (no mortgage)	New mortgage payment
Transaction costs	8-10% of sale price	2-5% of loan amount
Keep the home	No	Yes
Credit impact	Minimal	Credit pull, new account

When Selling Makes More Sense

Selling may be the better choice when:

The home no longer fits your needs. If you need to move anyway, whether for space, location, lifestyle, or other reasons, accessing equity through a sale accomplishes two goals at once.

You need maximum cash. Selling accesses your full equity. Refinancing only lets you borrow a portion.

Your current rate is low and you do not want to lose it. If you have a 3% mortgage from 2021, refinancing at today's higher rates could significantly increase your payment. Selling avoids this problem entirely.

You want to eliminate housing costs. If you can move to a paid-off situation, help family housing, or significantly downsize, selling eliminates your mortgage payment entirely.

When Refinancing Makes More Sense

Refinancing may be better when:

You want to stay in the home. If you love your home and your situation, refinancing lets you access equity without leaving.

Your cash need is modest. If you need $50,000, selling a $500,000 home to get it is overkill. A cash-out refinance is more proportionate.

Current rates are favorable. If you can improve your rate or your current rate is not dramatically lower than market rates, refinancing costs are easier to justify.

You expect appreciation. If you believe your home will continue appreciating, keeping it lets you benefit from future gains.

The Rate Lock Problem

Many Las Vegas homeowners locked in historically low rates during 2020-2022. These sellers face a dilemma: they have a mortgage at 3% or less, but refinancing means giving that up for rates of 6-7% or higher.

If your current rate is exceptionally low, refinancing becomes much less attractive. The math changes dramatically when your new payment could be 40-60% higher even without increasing your balance.

For these homeowners, the choices are often: stay put and keep the low rate, sell and accept that any new purchase will be at higher rates, or find alternative sources for needed cash.

Other Alternatives

If neither selling nor traditional refinancing is ideal:

Home equity line of credit (HELOC). Access equity as a revolving line without replacing your first mortgage. You keep your low rate and pay interest only on what you draw.

Second mortgage. Borrow against equity without touching your first mortgage. Higher rate than the first but preserves your existing low-rate loan.

Sell and rent. If you need cash but local buying does not make sense, selling and renting can be a transitional strategy.

Running the Numbers

Any decision this significant deserves careful calculation:

If selling: What would you net after all costs? What are your housing alternatives and their costs? How does your total financial picture change?

If refinancing: What would your new payment be? How does total cost over the loan term compare? What do closing costs add to the effective cost of accessing this equity?

Where to Start

If you are weighing selling versus refinancing your Las Vegas home, I can help you understand what you would net from a sale so you can compare it fairly to refinancing options. Having accurate numbers makes the decision clearer.

Ready to explore your options? Request a free home evaluation here or reach out directly to discuss your situation.

Las Vegas Home Refinance vs Selling: Frequently Asked Questions

Q1: What is the main difference between selling and refinancing my Las Vegas home?

Selling converts your entire equity to cash (minus selling costs) and requires you to move, while refinancing replaces your current mortgage with a new loan that may allow you to access some equity while keeping the property. Selling gives you access to 90-92% of your equity after costs, while refinancing typically lets you access equity up to 80% loan-to-value ratio.

Q2: How much does it cost to sell versus refinance in Las Vegas?

Selling typically costs 8-10% of the sale price when you factor in agent commissions, closing costs, and other fees. Refinancing usually costs 2-5% of the loan amount in closing costs and fees. For example, on a $400,000 home, selling might cost $32,000-$40,000, while refinancing a $320,000 loan might cost $6,400-$16,000.

Q3: Should I refinance if I have a low interest rate from 2020-2022?

If you locked in a rate of 3% or lower during 2020-2022, refinancing at today's rates of 6-7% or higher typically doesn't make financial sense. Your payment could increase 40-60% even without borrowing additional money. Consider alternatives like a HELOC or second mortgage that preserve your low first mortgage rate, or explore selling if you need substantial cash and were planning to move anyway.

Q4: Can I access my home equity without selling or refinancing?

Yes, you have other options including a Home Equity Line of Credit (HELOC) which lets you access equity as a revolving credit line without replacing your first mortgage, or a second mortgage which allows you to borrow against equity while keeping your existing low-rate first mortgage intact. Both options let you preserve favorable first mortgage terms while still accessing needed funds.

Q5: When does selling make more sense than refinancing?

Selling makes more sense when: you need to move anyway due to space or lifestyle changes, you need maximum cash access (refinancing only provides partial equity), you have a very low current rate you'd lose by refinancing, or you want to eliminate housing costs entirely by downsizing or moving to a paid-off situation. Selling accomplishes both accessing equity and changing your living situation simultaneously.

Q6: When is refinancing the better choice?

Refinancing is better when: you want to stay in your home long-term, your cash need is modest relative to your home's value, current mortgage rates are comparable to your existing rate, or you expect continued home appreciation and want to benefit from future gains. Refinancing lets you access needed funds proportionately without the disruption of moving.

Q7: How do I decide between selling and refinancing my Las Vegas home?

Start by calculating the actual numbers for both scenarios. For selling, determine your net proceeds after all costs and compare housing alternatives. For refinancing, calculate your new payment, total loan cost over time, and closing costs. Consider your current interest rate, how long you plan to stay, how much cash you need, and whether you're satisfied with your current home and location.

Q8: What is the Las Vegas condo and housing market like in 2025?

The Las Vegas housing market continues to evolve with changing prices, inventory levels, and buyer demand. Market conditions directly impact both selling proceeds and refinancing options. Current trends in condo prices, new construction incentives, and overall affordability affect whether selling or refinancing makes more financial sense for your specific situation and timeline.

Q9: How much equity can I access through a cash-out refinance?

Most lenders allow you to access equity up to 80% loan-to-value (LTV) ratio through cash-out refinancing. This means if your home is worth $500,000, you could potentially refinance up to $400,000. If you currently owe $250,000, you could access up to $150,000 in cash minus closing costs. The exact amount depends on your credit score, income, and lender requirements.

Q10: What are the tax implications of selling versus refinancing?

Refinancing has no immediate tax implications since borrowed money isn't considered income, though mortgage interest may be tax-deductible. Selling may trigger capital gains taxes on profits exceeding $250,000 (single) or $500,000 (married filing jointly) if the home was your primary residence for at least 2 of the last 5 years. Consult a tax professional to understand your specific situation before making a decision.