Is NOW a Good Time to “Move Up”? Home Buying in Adams County, by Jennifer Prestwich REALTOR®

Is Now A Good Time to “Move-Up”?

With the market crash we experienced a loss in property values, and many of us elected to stay put.  Homes that were purchased with the intent of being a 2-5 year house have become a much longer-term residence.  But with the market moving forward, it might be a good time to “move up”.
For example, a 3 bed, 2 bathroom home near where I live was purchased in 2008 for $151,000.  Today, that same home could sell for around $200,000.  Take a look at the numbers:
Purchased home 4 years ago for $150,000 with 5% down

Current Property Value $200,000

Original Loan Amount $142,500
Interest rate 6% with Monthly Mortgage Insurance
Monthly Payment $933

Current Loan Amount $134,825

Sell at Current Value = $200,000
Payoff Current Loan = ($134,825)
Real Estate Fees (6%) = ($12,000)

Total Proceeds to You = $53,175

Purchase New Home for $270,000 with Proceeds as Down Payment

New Property Value $270,000

Conventional Loan $216,825
Interest rate 4.25% (4.67% APR) with Monthly Mortgage Insurance

Monthly Payment $1066

Purchase Price for New Property = $270,000
New Loan Amount                   = ($216,825)
Down Payment (sale proceeds)    = $53,175
Increase in Monthly Payment = $133!

Remember that every situation is unique in this regard. Be sure to consult with a REALTOR who specializes in the neighborhood when you consider selling.  Call me at 720-341-5235 to find out whether now is the right time for YOU!

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