Are The What-Ifs Scaring You From Selling?
Those pesky “What if …?” thoughts can make you feel trapped. So let’s talk about them so you can feel empowered, not paralyzed.
The #1 “what if” I’ve heard from homeowners who are on the fence about selling is …
“What if I want to sell now, but feel locked in by my current low-interest-rate loan?”
This is one of the primary reasons the number of existing homes coming on the market has been down for well over a year. More than 90% of existing mortgages are with an interest rate under 6%, according to the FHFA national mortgage database. So I can see how the thought of selling your home to buy another home at double (or even more than double!) your current interest rate might seem daunting.
However, sellers are also sitting on a tremendous amount of equity in their homes right now. And that amount just might be enough to offset a higher interest rate.
So the conversation about selling actually shouldn’t be about what interest rate you’ll be paying for your new home if you sell. It should be about what your monthly payment will look like. With higher equity in your current home, this means you can bring more of a down payment and/or buydown your interest rate for a new home. There are actually many scenarios that just might not be as scary as you imagine. And remember, interest rates don’t have to be permanent.
The best way to know if it’s the right time to sell for you, is to get armed with knowledge. This means learning the current value of your home, finding out about different mortgage options and discovering how your money can work for you. And the best way to get all this info is to talk to a Realtor.
Still feeling on the fence? Realtor.com has a great article discussing this one and many other “what if” thoughts that might be scaring you from selling. Or reach out to us and we’ll provide insight on your individual situation.