You’ve lived in your home for many years and you love it, but you are considering moving on. Your beloved home has witnessed your family grow and evolve and it holds precious memories. Few feelings beat the emotions people feel when they really love their home. No matter what kind of craziness happens in the outside world, home is where you can kick off your shoes and recharge your batteries.We all need that relaxing haven from the outside world, and maybe you need to change locations. How do you know if now is the right time to sell your house and move?
Your Only Debt Is Your Mortgage
As a general rule, the less debt you have, the better. If all your credit card debt, car payments, and any other debt besides your mortgage is paid off, then selling is a great idea. Additionally, we recommend that you save three to six months worth of monthly expenses in your savings account for any types of emergencies.
You Have A Decent Amount Of Equity
Anyone with common sense would not willfully sell their home if they went underwater with their mortgage. The last thing you want to do when selling your house is write a check to your banking institution. We recommend that you sell once your home has at least 20 percent equity because you can use it for your down payment on your next house. Sure, you can put down a smaller down payment on your new house, but you will have to pay private mortgage insurance as well. Additionally, the higher your down payment, the lower your monthly costs will be.
You Can Afford To Move
We know that this seems like a no-brainer, but you must be able to afford all the costs associated with moving. Remember that if you want to sell your house, you will throw down a good amount of money to stage the house. This could include the cost of repainting your house, renting out a storage space, and various other expenses. If you prefer to hire movers to move your belongings, do you have the finances available to pay them? It might have been awhile since you last moved, but it is by no means cheap.
Your House Is Bursting At The Seams
You might have planned for your first two children, but that third one was quite the surprise for everyone. It might not help that you have two great danes, a rabbit, and a cat. Maybe this is a bit of an extreme example, but families do sometimes outgrow their houses. For the sake of everyone’s sanity, perhaps it’s time to seek a more appropriately sized house.
Your Nest Is Empty
Have your kids moved out of the house and into adulthood? Suddenly, you may have no use for all those extra rooms and that giant yard. Why not move into a smaller home that feels cozier and is easier to take care of?
Are you ready to sell your home and buy a new one? Contact our mortgage brokers to find the best mortgage rates today.