Expert tips on leveraging the equity in your home to buy a new one.
Are you feeling stuck in a house you bought four years ago that doesn’t fit your needs anymore? Statistics indicate that over 75% of home buyers since 2020 have experienced regrets, feeling they settled on a home purchase. However, if you bought three years ago, there’s good news: you’ve likely gained equity.
A recent discussion with a mortgage loan officer highlighted how homeowners can leverage this equity to address consumer debt, which has risen due to high inflation. Many people have accumulated around $100,000 or more in debt. The officer helped clients sell homes that no longer suited them, paying off debt and improving cash flow despite low interest rates that made them feel trapped.
If your current house no longer suits your needs and you’re burdened with consumer debt, selling it might improve your cash flow. Using the equity built over the past few years to pay off debts could make a significant difference. In some cases, even a 6% to 7% interest rate on a new mortgage might be more financially beneficial due to the reduced overall payments when compared to various credit card bills, auto loans, and student debts.
Don’t fall for the idea that a low 3% mortgage rate means you’re stuck. It’s crucial to consider the bigger financial picture. If you have questions or need advice tailored to your situation, feel free to call or email us. Our aim is to assist you in making sound financial decisions and finding a home that truly suits you.
