by Chip Bubela
on Tuesday, October 20th, 2020 at 11:29am.
Interest rates are down, which means buyers’ purchasing power is up.
There’s an inverse relationship between interest rates and homebuyers’ purchasing power. In other words, since interest rates are low, buyers’ purchasing power has increased. In that vein, there are two topics I want to discuss:
Equity is the difference between what you owe on your home and what it would likely sell for in today’s market. Over time as you pay down your mortgage, the home’s value appreciates with the market. However, many people don’t really know how much equity they have. There’s a good chance that you have more equity than you realize and that you could actually be able to move up if that is a goal you have.
With interest rates as low as they are, you might be able to afford a $250,000 home this year where you could only afford a $200,000 last year. If you’ve lived in your home for a long time, you might be sitting on a lot of cash.
There’s a good chance that you have more equity than you realize.
If you have been considering buying land on which to build a custom home, now is also a great time to do so. We would love to coach you through that process and take you from where you are to where you want to be.
I’d also love to help you assess your current equity situation and see whether or not you have money in your home that you could use to finance your next move. Reach out to us for a broker’s price opinion on what your home would likely sell for in our market. After that, we can speak to a lender to see how much you qualify for and then put together a strategy if you need to sell your current home.
If you have any questions, don’t hesitate to contact us. We’d love to help you.