Do you find yourself daydreaming about extra bedrooms, a larger backyard, a bonus room or a nicer neighborhood? If so, it may be time to considering a move up. A move up is exactly as it sounds, it’s the act of moving from a smaller home to a larger one. But as fun and dreamy as it sounds, is it really the right choice for you right now? Here are 4 factors to think about when you’re considering moving up in Tacoma.
Does Moving Up in Tacoma Make Sense?
Check your equity
When moving up, you want to make sure you at least break even on your mortgage payoff before selling your home. Ideally, you want to have built enough equity on your current home that you’re able to move up without taking any cash out, as the equity on your current home could be used on a down payment. You can assess this by talking with your lender. Generally, you don’t build much in the first few years of paying a mortgage, but if you’ve owned your home for 5+ years you may have gained a significant amount of equity. And who knows, in hot markets like the one we’re currently in, it’s possible to have gained a substantial amount of equity in less time.
Review your income
It’s important to review your income to make sure you can sustain the additional costs with moving – a new mortgage, taxes, insurance, and maintenance. You also want to make sure that any larger bills have been paid off before moving and taking on these new expenses. Additionally, if you’ve recently changed jobs where you aren’t quite sure what your income rhythm is, it may be a good idea to wait until you feel comfortable understanding an average monthly income.
If location is the reason you are considering moving up in Tacoma, check the pros and cons of your current neighborhood. Often times, your home doesn’t always match your lifestyle, as you may have new school district requirements or closer commutes elsewhere. If the new home you’re looking at doesn’t fit your location requirements either, it’s good to realize that. The last thing you want to do is fall in love with a home that one year later, you realize is still in the wrong location for you and your family.
A low interest rate will help you buy a larger home and make it easier to find a buyer to buy your current home. Research the rates to see if now if the optimal time for moving up in Tacoma. If rates are high, you may not be saving much as at by moving up, even with a large amount of equity. If rates are low, but moving up in Tacoma isn’t a practical decision for you and your family right now, there is always the option to refinance.
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