Take Advantage of Today’s Market: Move or Refinance?
While today’s market is tough to buy a home in, it leaves current homeowners with multiple lucrative options.
As interest rates remain relatively low and home values in competitive areas soar, many homeowners are left wondering how to best take advantage of the current housing market. Overall, two primary options are to sell your home and move, or to refinance your loan.
How can homeowners go about choosing which route is best for them? These are a few key considerations.
Family Situation
One popular choice in a market like today’s is to move, either to a less competitive area or a smaller home. Downsizing can be a lucrative financial decision, as long as it makes sense for your family’s situation.
Think through what your family will look like over the next five years. Do you think you’ll be expecting more children? Will you become an empty nester? Is an aging family member likely to need to move in with you? Consider the amount of space you’ll need in order to determine whether it makes sense to change the size of your home.
Of course, some moves don’t involve downsizing but instead achieve the exact opposite! If you anticipate that your family will grow in the next few years, now is a great time to profit off of your current home in today’s seller’s market. Many growing families are able to take the equity from their current home and reinvest it into a new, custom home that truly meets all of their needs and priorities.
If you don’t foresee your family setup shifting much and you’re comfortable in your current home, refinancing may be a better option. That way, you benefit from today’s rates without having to enter the market as a buyer in an overly competitive time!
Location and Commute
It makes sense to move if your priorities around location have shifted. With remote work growing more permanent, many professionals no longer need to live near the office. Some even prefer to move states, seeking out a lower cost of living and a better quality of life in a place like Raleigh, NC instead of continuing to pay coastal city prices needlessly.
Another key consideration for ideal location is school district and private school proximity, which motivates many young parents with children aging into the school system to consider a move.
Living exactly where you love? Stay, and consider a refinance!
Lifestyle
In the midst of lockdown and a worldwide reckoning with priorities and lifestyle choices, many families experienced a shift in needs and preferences. Homes became schools, workplaces, recreation spaces, and quarantine wards. They became beacons of safety and comfort, but also began to feel smaller and smaller.
Many individuals and families now seek more space - for finally gathering again, for continuing remote work, and for living their ideal lifestyle. Settling for “good enough” when it comes to our homes no longer feels right, and the competitive market has shed light on must-haves and reasonable sacrifices. For many, moving feels daunting, but staying put feels suffocating.
If you know you need to move in order for your home to meet your priorities and lifestyle demands, custom building may be just what you need! Whether it’s more space for your garden, a decked-out home office, or an outdoor pool, you’re in the driver’s seat to decide what you and your family really need.
Full Financial Picture
Whether you’re considering a move or a refinance, sitting down to understand your full financial situation is a key first step!
To refinance your home, you’ll need to qualify for the new loan just as you did when you originally took out your mortgage. If you’ve recently become self-employed or changed jobs, your best move will likely be to wait and save - and enjoy the steadily increasing value of your home!
Of course, moving comes with its own set of costs, and it’s important to consider how much of that built-up equity you’ll need to toss toward down payment, closing costs, moving help, and more.
To avoid the over-competitive market and build a home that’s true to you, build your own custom home! With Atmos, the process has never been smoother as we connect you with trusted experts for each step of the process. Don’t wait on your dream home - get started today!
