Does Moving Up Make Sense?
Answer these questions to help you decide
whether moving up makes sense.
1. How much equity do you have in your home?
Look at your annual mortgage statement or call
your lender to find out. Usually, you don’t
build up much equity in the first few years
of paying a mortgage, but if you’ve owned
your home for a number of years, you may have
significant unrealized gains.
2. Has your income increased enough to cover
the extra mortgage costs and the costs of moving?
3. Does your neighborhood still meet your needs?
For example, if you’ve had children, the
quality of the schools may be more of a concern
now than when you first purchased.
4. Can you add on or remodel? If you have a
large yard, there might be room to expand your
home. If not, your options may be limited. Also,
do you want to undertake the headaches of remodeling?
5. How is the home market? If it’s good,
you may get top dollar for your home.
6. How are interest rates? A low rate not only
helps you buy more home, but also makes it easier
to find a buyer.
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