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
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.