Here are some things to consider if your are thinking of selling your existing home and moving “up” into a larger, more expensive one.
Interest Rates: Mortgage interest rates are at all-time lows now, making a home purchase more affordable, but that’s not always the case. Contact a reputable mortgage lender to find out what rates you would qualify for and use that as a starting point.
Income: In most cases, moving to a better home will increase your monthly mortgage payment. Examine your budget to determine if you can afford higher housing costs, and if so, what your upper limit is.
Home Equity: How much equity do you have in your current home? If it is a considerable amount, the profits from the sale of your home can be applied toward your new mortgage, offsetting the typical increase in monthly payments.There are other things to consider, so make sure to contact a loan officer or financial expert to discuss your financing and payment options so that you can outline a plan to get into the home of your dreams.