How to Know Whether You Should Move or Refinance
With the surge in home equity this year it is leaving homeowners with the big question of “should we move or refinance?”
With real estate values increasing this year homeowners are seeing their equity skyrocket! According to the US Census over 38% of homeowners own homes free and clear giving them a multitude of opportunities to make money from their home.
- Refinance
With equity rising and mortgage rates falling makes it the perfect climate for refinancing a home. A reason a homeowner would choose to refinance is to lower their payments or convert a portion of the equity to cash while they keep their monthly payments the same.
- Move into Dream Home
The pandemic has caused many people to change their priorities when it comes to what they want in their home, add that with how the market is booming for sellers it seems to be the perfect time to sell. According to the NAR, a typical single-family home has grown in value by approximately $150,000 over the last fifteen years. Meaning a seller is left with plenty of equity to use for a down payment on a new home, so not only can they buy a more expensive home, but their payment would remain the same!
Now is the hard part, which is the best option for you? Well, to help make the decision easier you need to break down your current mortgage rate and the level of equity. Then you can decide which option can give you the most bang for your buck.