Is Moving Up a Smart Decision?
There are many reasons why someone would want to move into a bigger or nicer home. Some of these are based on necessity, such as adding another child to the family, having aging parents move in or starting a home-based business. In other cases, a new home is desired purely for location, size or other features.
Because a home purchase is a major decision, it is important to thoroughly research whether or not moving up is a smart choice. Here are some things to consider:
- Interest Rates: Mortgage interest rates are at all-time lows now, making a home purchase more affordable, but that's not always the case. Contact a reputable mortgage lender to find out what rates you would qualify for and use that as a starting point.
- Income: In most cases, moving to a better home will increase your monthly mortgage payment. Examine your budget to determine if you can afford higher housing costs, and if so, what your upper limit is.
- Home Equity: How much equity do you have in your current home? If it is a considerable amount, the profits from the sale of your home can be applied toward your new mortgage, offsetting the typical increase in monthly payments.
Source: Weichert Insights
Hi Barbara~ Moving up can be a smart decision if the person can actually easily afford to do so.
Barbara, these are all important things for potential home buyers to keep in mind.
You hit the right notes with your post. When people move they definitely need to consider a lot of things. They should be wise especially in today's economy.