Here’s Why You Should Move Up Now if You Can!
Right now is a great time to move from a smaller home to a larger home. Let’s assume you purchased a home for $200,000 in 2007 and have seen it drop in value by 20% to $16o,ooo. That would mean you would lose $40,000 on the sale of your old home.
Now let’s take a look at your move up home. It was worth $300,000 in 2007 and saw the same 20% drop in home value to $240,000. That property has lost $60,000 in value. Your Net gain in this is $20,000.
Chart Illustrating Move Up Opportunity
Interest Rates Impact on Moving Up
Interest rates in 2007, ranged in the 6% range. We will use 6.5% although your mortgage rate could have been higher or lower. As you can see in the chart below, by purchasing a $240,000 home today you would also save $183 in your mortgage rate.
Future Wealth Building
Ok, so let’s face facts the last couple of years have not been pleasant for homeowners. I look at the market everyday, so I know how much my home has dropped in value in just the last few years. That has changed and now we are beginning to see increases in home prices. A slow, steady increase which is great for the economy and for you. Let’s take a look at the impact of a 10% increase in home values over the next several years.
That’s a total gain of $28,000 just by moving up. Add in the savings on interest rates and you can see why this is a great opportunity to buy your dream home. Mortgage interest rates are expected to rise this year.
Where Will You Be in Ten Years?
We have just gone through a really difficult financial time in our country. Now is a great time to sell your old home and buy a new home. In ten years, you’ll be very happy with your decision to move up!