With interest rates so low it is clear to everybody that the time to look at your mortgage is NOW.

When doing this we learn a lot of things. One thing we learn is what our current interest rate is. Another thing we learn his how much equity we have in our home. Working with the correct mortgage professional and real estate agent can help you find these answers.

Currently prices are way up at all time highs for most places and rates are at all time lows. For some people this is going to mean they have a lot of paper equity in their home. Instead of choosing to refinance their existing home to save money it may be time to look at what can be done if the equity was cashed out. When we sell a property for the moment between the old sale and the new purchase we actualize the paper equity into cash.

With this new cash you can use it as a down payment for the next home. This if you are lucky may mean you are able to get rid of PMI saving you from throwing away money. By paying down more of your new home your lower loan value (even though higher than your last) may end up costing the same as or less than your existing home did.

Why is this you ask?

With a major change in interest rate, dropping the PMI, and cashing in on the equity to use it on our new house we have set ourselves up for success. All these underlying factors and then some are going to put you in a better financial status. If you need help figuring out if you are ready to level up your housing please reach out to us. We would be happy to have one of our Move Mentors mentor you on the moving process. Please make sure to check out our Facebook group, Podcast, and newsletter named Homeownership. If you have any questions or comments please leave it in the feed underneath.

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