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
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.
- 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 you’ve 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 it’s 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.