Yes, Virginia, You Do Have Equity! How to Step Up
Most homeowners that have lived in their homes for at least 2 years, will have enough equity built up in their homes to move. Our Northern Virginia markets have done very well giving those who would like to step up to a larger home or a more convenient location the opportunity to do so. Home prices have jumped 3% to 7% annually during this time. Interest rates are once again touching historical lows. This will give many the opportunity to make the jump to a larger home less dramatic. Combine this great low rate with some debt reduction options to maximize monthly cash flow, and there may be an opportunity to make a jump to a larger home with no additional monthly outlay. There are also great low down payment financing options and even some no down payment financing options that are available. Let’s take a look at an example of a past client who is looking to take advantage of recent property value appreciation and low interest rates to make the step up!
A past client of ours purchased a townhouse 2 years ago for $325,000. This townhouse has appreciated over the past 2 years and we are anticipating a sales price of $375,000. This family used a low down payment purchasing option and has a remaining principal balance of around $312,000. Their goal is to purchase a small single family home for $500,000 using a 5% down payment mortgage. In this scenario, this family will have enough equity to make the step up as their investment grew dramatically in only 2 years. They will have enough equity to cover closing costs, commissions, and new down payment with a low down payment mortgage.
Many people would be surprised to realize how much equity they do have in their current home. The process is not hard and we are truly experts in making the transition from current home to a new home seamless. Please give me a call to find out how much equity you have in your home!
If you or anyone you know is considering a change, reach out to me at 703-477-6022. We can analyze your options and help make your next move possible.