And we tend to agree with them not to sell unless something happens that change the housing needs for them. We also want to discuss some other aspects here too for your perspective.
Why you should not sell in this environment?
• If you bought or refinanced during “Covid interest rate” you do not want to lose that rate and end up with the new rate on the high six right now. We assume?
• Home values keep rising despite the interest rate being higher because of the low inventory crisis in our city hence keeping the house means keeping the rising equity.
• Bidding war still happens in most areas in Columbus with the good house condition and a good pricing strategy hence buying a house right now is not necessary a piece of cake.
Why you should sell in this environment?
• Someone dies, a divorce, job relocation, growing family, downsizing… In short, something happens.
• You wished to move to a dream home for a long time but had limited financial source for down payment or affordability of monthly payment. Yet you gain a huge equity over the years on your current home and now can afford to put a big chunk of down payment into that new home financing through that equity. Regardless of interest rate, your new monthly payment might be similar to your current monthly payment or not that big gap as you might think. We can run the scenario for you if you’re curious.
• Buy a brand new home with special interest rate from the builders! Most builders have some special financing to attract homebuyers to buy their inventory homes and it can be as low as 4.99%. Promotions change regularly so get a hold of us if you’re curious and we will find out the promotions at that moment for you.
What else you can do with the equity you have in the house?
• Live in your primary home with the low interest rate, get a HELOC (Home Equity Line of Credit) with no closing cost from local lenders (We can refer you to good contact from Huntington if needed). This can be a good pool for any sudden needs from upgrading the kitchen to start a side hustle business.
• In case you want to get the cash out from your home equity but a traditional loan from local lenders cannot get it done for you (debt ratio limit or income limit etc.) explore the non-QM loan product (our mortgage division can take care of this for you).
• Keep the first house as a rental and go buy a second home. The future rental income would wipe off the mortgage payment of the first house so you only worry about the debt ratio of the second house on your name. (Note: set up a meeting with us to learn more about investment route and how we can help you including our property management service). This is probably our favorite approach because now you have 2 houses to appreciate over time and can build that generational wealth for your family in the long run.
What’s your opinion on this matter? Feel free to give us a call to chat!
