Does Moving Up Make Sense?
Answer these questions to help you decide whether moving up makes sense.
- How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you donï¿½t build up much equity in the first few years of paying a mortgage, but if youï¿½ve owned your home for a number of years, you may have significant unrealized gains.
- Has your income increased enough to cover the extra mortgage costs and the costs of moving?
- Does your neighborhood still meet your needs? For example, if youï¿½ve had children, the quality of the schools may be more of a concern now than when you first purchased.
- 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?
- How is the home market? If itï¿½s good, you may get top dollar for your home.
- How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.