How Do You Know it is Time to Upgrade Your House?

Most of us dream of a bigger or newer house. Perhaps your current home does not have the features you want. You should thoughtfully consider when is the right time to move from wanting to upgrade your house to get a new place? Those in the real estate business tell you there are some solid reasons to upgrade your home.

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They include things like the fact that your family no longer fits in your house. If your kids are getting older and need their own room, it is probably time to upgrade. If you love your furniture, but it will not fit in your current house, you might want to consider an upgrade. If you need a separate space, like an office, game room, or even a spare bedroom, and your current house does not have it, it may be time to move.

While these may be excellent reasons to want a larger space, it does not mean your family is ready to pay for a larger area. An upgraded space will come with a high price tag, but it does not stop at the purchase price. The cost of homeowners insurance will increase, as is the cost to maintain the larger house. Your utility bills will increase, and you might need more furniture to fill up the additional rooms.

Some other considerations, when deciding if now is the right time to make a move include the current interest rates. If interest rates are decreasing, now may be a good time to sell your current house and upgrade, especially if you can get a lower rate than your current one. The state of your finances also matters. Can you afford to pay more each month? Most financial advisors tell you that you should have enough money save to pay at least three months of bills. Are you able to do that with a larger mortgage payment? You should understand how much you can afford each month before you start looking for a new house.

The equity in your house makes a difference, too. Do you have at least 20 percent equity in your home? If you have that much or more, it could be a great time to sell. If you do not have at least 20 percent equity in your house, you should consider staying where you are. To purchase a new home, you should have at least 20 percent as a down payment. If you cannot get the 20 percent out of your current house, you will need to take it from your savings or stay where you are.

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