Time to Move to a New Home, or Remodel Your Current One?

Mortgage and Lending with Advantage Lending Corp / Daniel Litvin

While the country remains fixated on the problems of the overall housing market, many people are facing a

much more personal issue - what to do with their own home when a change is needed. Whether it is the birth of

a child, an elderly parent moving in, a job change, or just time for something different, making the decision to

move or remodel is rarely an easy one. With the overall housing market not as healthy as it was a few years ago,

the questions move beyond the number of bedrooms, the local schools, and local amenities. One must consider

how long it may take to sell the home, especially if the needs are pressing. Additionally, will there be improvement

projects to complete that would make the house easier to sell. Remodeling has its own set of questions,

including how long you might need to stay in the home to recoup the investment from a major project.

Whether remodeling or moving is in your near future, some significant mortgage analysis will be required.

Two of the most important issues will be the equity in your home and your credit situation. Generally, the

more equity in your home, the greater your options become. Your home's equity can be accessed for a remodeling

project either through cash-out refinancing of your current

mortgage or a second mortgage or line-of-credit. When selling

and buying a new home, your equity can be used for your new

home's down payment and closing costs. Your credit situation

will impact what type of interest rate you'll pay, how much you

can borrow, and the type of loans you should consider.

Given current market conditions, an honest and thorough analysis

of your financial situation should be completed before you

get serious about moving or remodeling. Please give me a call

to schedule a time for us to meet. I'll help make sure that you

understand all the financial options available to you.



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