The answers to these questions will help you
decide:
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 of
moving?
3. Is the neighborhood still a good one for
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 yourself?
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.
