November 15, 2021
Renovate or Move?
The popular HGTV series “Love it or List it” follows homeowners who are unhappy in their homes as it is renovated by a designer, but they are also shown new listings and tempted to buy. Sadly, most of us aren’t lucky enough to be on that show so must decide ourselves “Do we renovate or move?” Let’s explore options to help you find the best decision!
Assess Your Needs
Over the course of the last 2 years, the ways our homes serve us has changed dramatically. Many have realized the need for a home office (or two in some cases) because so many are still working remotely. During the shutdown, many people realized the value that a nice outdoor space can bring to their lives. We also realized the importance of space at home for family activities. All of these and more have many homeowners struggling to decide whether to renovate or move.
You must first begin by assessing the needs of your family in your current home. What exactly are you looking for from your current home? Could those needs be made possible through renovations? Is it worth it to move to a new home? Answering these questions will help you know exactly what you want in your new space. Then you must decide how to fund those home renovations. That is where home equity comes in.
As the price of homes skyrocketed, many homeowners are unaware of the equity that has been added to their home. Home equity is the value of your home. When compared to your purchase price and remaining mortgage, you may have the funds available to complete those desired renovations or to have a down payment available for a new home.
A study from CoreLogic shows U.S. homeowners with mortgages (roughly 63% of all properties*) have seen their equity increase by a total of nearly $2.9 trillion since the second quarter of 2020, an increase of 29.3% year over year. While the housing market has skyrocketed recently, this trend will not always stay. One way you can take advantage of your current home equity is to refinance your home at a lower interest rate. Method Mortgage can help you get a lower interest rate, therefore reducing your monthly payment. The money saved each month could help pay for those renovations! Check out our Refinance Calculator to give you an idea of whether refinancing might be beneficial to you or contact us today.
According to the Federal Housing Financing Agency, almost 57% of mortgage owners have an interest rate of less than 4%. Refinancing now, before the housing market increases again, usually means you keep your current rate of 4% or less. If you are one of those that have an interest rate of more than 4%, you may be able to refinance with a cash-out or buy a more expensive home, but keep your monthly mortgage payments close to your current amount.
Renovate or Move?
So, what’s your decision? Still weighing your options? Method Mortgage is here to help, from refinancing to getting you pre-approved for a new home. Contact us to begin the process! You can even apply online. We are ready and waiting to help you find your smartest way home!