Answer these questions to help you decide whether moving up makes sense.
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.
Has your income increased enough to cover the extra mortgage
costs and the costs of moving?
Does your neighborhood still meet 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.
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?
How is the home market? If it's good, you may get top dollar
for your home.
How are interest rates? A low rate not only helps you buy more
home, but also makes it easier to find a buyer.
