While the country remains fixated on the problems of the overall housing market, many people are facing a
much more personal issue - what to do with their own home when a change is needed. Whether it is the birth of
a child, an elderly parent moving in, a job change, or just time for something different, making the decision to
move or remodel is rarely an easy one. With the overall housing market not as healthy as it was a few years ago,
the questions move beyond the number of bedrooms, the local schools, and local amenities. One must consider
how long it may take to sell the home, especially if the needs are pressing. Additionally, will there be improvement
projects to complete that would make the house easier to sell. Remodeling has its own set of questions,
including how long you might need to stay in the home to recoup the investment from a major project.
Whether remodeling or moving is in your near future, some significant mortgage analysis will be required.
Two of the most important issues will be the equity in your home and your credit situation. Generally, the
more equity in your home, the greater your options become. Your home’s equity can be accessed for a remodeling
project either through cash-out refinancing of your current
mortgage or a second mortgage or line-of-credit. When selling
and buying a new home, your equity can be used for your new
home’s down payment and closing costs. Your credit situation
will impact what type of interest rate you’ll pay, how much you
can borrow, and the type of loans you should consider.
Given current market conditions, an honest and thorough analysis
of your financial situation should be completed before you
get serious about moving or remodeling. Please give me a call
to schedule a time for us to meet. I’ll help make sure that you
understand all the financial options available to you.