Do you find yourself daydreaming about a bigger home, a shorter commute or a nicer neighborhood? It may be time to consider a move up. But does it really make sense right now? Check out some of our tips on determining if moving up is the right move for you.
Check your equity
You want to make sure you at least break even on your mortgage payoff before selling your current home. Look at your annual mortgage statement or call your lender to find out how much equity you have in your current home. Usually, you don’t build up much in those first few years of paying a mortgage, but if you have owned your home for 5+ years you may have significant unrealized gains.
Review your income
Before making a move, review your income and budget to ensure that you can sustain the additional costs involved with moving – a new mortgage, taxes, insurance, and maintenance. You will want to also make sure any larger bills have been paid down before taking on these new expenses.
Location, location, location!
Often times your first home doesn’t always fit your current lifestyle. You may have new requirements for your new neighborhood such as school districts, safety, or closer commutes. Check the pros and cons of your current neighborhood to that of a new one to determine if you need to make the move.
Consider a remodel
Depending on what you need, there may be the option to adding on or remodeling your current home. This may be more cost-effective than a complete move, especially if you look into using a renovation loan.
How are the interest rates?
A low rate will not only help you buy a larger home, but it will also make it easier to find a buyer for your current home. Research the rates to see if now is a good time to move up. If rates are low but purchasing a new home may not be practical right now, you can always look to refinance.