The Advantages of Downsizing Your Home in Albuquerque
Are you thinking about moving into a smaller home in Albuquerque? Many people choose to downsize, and for many reasons. One major reason to downsize is if you plan to retire to Albuquerque and don't need as much room as you had when you were raising children.
Now is a great time to consider if downsizing is the right choice, as home values have been steadily increasing for years. If you've owned your home in Albuquerque for a while, then you've no doubt built equity in it. That puts you in a great position.
Another strong reason that downsizing is a good idea right now is that mortgage rates are expected to remain low throughout 2020 at an average of 3.8% for a 30-year fixed-rate loan.
When you combine growing equity and low interest rates, it makes for an opportune time to consider downsizing.
Using Your Home Equity
For people who are looking to buy a bigger and better home in Albuquerque, the plan is to buy a home and gain equity by making mortgage payments for several years. Over time, home values generally increase, adding to that value. You then can take that built up equity and make a down payment on the larger home.
For those who want to downsize, it works a bit differently depending on your goals.
Some may chose to downsize for reasons other than retirement. Perhaps a younger homeowner may not need as much room if they are single. It may be a way to save money and simplify their lifestyle. The reasons can be quite varied.
If you've built equity in your current home, you may be able to make a huge down payment toward a smaller home, or perhaps even pay for it entirely. Either way, you're in the plus, with little or no mortgage payment.
Those who choose to put their equity toward a new home have the opportunity to make a substantial down payment or maybe even to buy their next home in cash. This is incredibly valuable if your goal is to have a minimal mortgage payment or none at all.
The Power of Low Mortgage Rates
If you still need to get a mortgage when you downsize, then now is the time to lock in the low rates while they last. You should also consider a shorter term loan, as you can pay it off faster. Loans with shorter terms have lower rates than 30-year loans, which makes them a better deal if you can afford the payments.
If downsizing is your goal, now is the perfect time to consider a transition to a smaller home in Albuquerque. With low rates and rising home prices, you're in an ideal position to make downsizing an economic boon.
Sandi Pressley and her team will be happy to discuss your goals, now matter if you want to downsize or upsize your home. Contact us today to find out how you can use your home equity and low interest rates to your advantage.
Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.
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