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DOES MOVING UP MAKE SENSE?
These questions will help you decide whether you are ready for a home
that is larger or in a more desirable location. If you answer yes to
most of the questions, it is a sign that you may be ready to move.
1. Have you built
substantial equity in your current home? Look at your
annual mortgage statement or call your lender to find out. Usually, you
do not build up much equity in the first few years of your mortgage, as
those monthly payments are mostly interest. If you have owned your home
for five or more years you may have significant, unrealized gains.
2. Has your income
or financial situation improved? If you are making more
money, you may be able to afford higher mortgage payments and cover the
costs of moving.
3. Have you
outgrown your neighborhood? The neighborhood you pick
for your first home might not be the same neighborhood you want to
settle down in for good. You may have realized that you would like to be
closer to your job or live in a better school district.
4. Are there
reasons why you cannot remodel or add on? Sometimes you
can create a bigger home by adding a new room or building up. If your
property is not large enough, your municipality does not allow it, or
you are simply not interested in remodeling, then moving to a bigger
home may be your best option.
5. Are you
comfortable moving in the current housing market? If
your market is hot, your home may sell quickly and for top dollar, but
the home you buy also will be more expensive. If your market is slow,
finding a buyer may take longer, but you will have more selection and
better pricing as you seek your new home.
6. Are interest
rates attractive? A low rate not only helps you buy a
larger home, but also makes it easier to find a buyer.
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