If you currently own a home with an interest in the 2-3.4% range, WHY would you ever sell your house? These golden handcuffs of homeownership are trapping people in homes that they have outgrown, but with the low-interest rates, they are deciding to make it work.
Hi, I'm Shand Vanore. I'm selling the Sierras, and I'm your millennial older sister who is here to educate you on all things Real Estate and Homeownership related.
Look, I get it, I'm in the same situation. My husband and I purchased a home in 2012! This was a great time, and we were able to purchase a home in a very nice neighborhood, and our interest rate is 3.5%. Our golden handcuffs are tight. The open-concept living that we once loved does not suit our lifestyle with two parents who work from home and two kids just being kids.
I'm a real estate agent, so I am constantly looking at properties and using the mortg
If you currently own a home with an interest in the 2-3.4% range, WHY would you ever sell your house? These golden handcuffs of homeownership are trapping people in homes that they have outgrown, but with the low-interest rates, they are deciding to make it work.
Hi, I'm Shand Vanore. I'm selling the Sierras, and I'm your millennial older sister who is here to educate you on all things Real Estate and Homeownership related.
Look, I get it, I'm in the same situation. My husband and I purchased a home in 2012! This was a great time, and we were able to purchase a home in a very nice neighborhood, and our interest rate is 3.5%. Our golden handcuffs are tight. The open-concept living that we once loved does not suit our lifestyle with two parents who work from home and two kids just being kids.
I'm a real estate agent, so I am constantly looking at properties and using the mortgage calculator. It just does not make financial sense for us to move at this time. But the thing is, there are strategies to leverage our current situation.
The strategy I am going to go over today is taking a HELOC (Home Equity Line of Credit) and then using that money towards a down payment on a house that is more suitable for our lifestyle. At the same time, also converting our existing home into a rental property.
Now, in order for this strategy to make sense for you, it is crucial that you are working with Mortgage Advisors who are going to give you the time to run through multiple scenarios to make sure that this is a financially viable option for you. When I discussed this strategy with my advisor, they were very quick to tell me that they could do the HELOC, but it is in my best interest to shop around. Again, I can't stress enough that you work with an advisor who truly has your best interest at heart.
You will also need to be working with a property manager who can give you a very realistic, conservative number of what they believe your existing primary residence could rent out for.
It is very possible, in today's rental market, that the cash flow generated from the rent would be enough to cover the payment on the HELOC, existing mortgage payment, and I also want to ensure that I would be able to set aside funds for repairs and maintenance of the property.
So as you can see, there is quite a bit of work involved in this strategy, but it allows you to have an educated, thoughtful approach versus not doing anything at all and being unhappy in your current home.
If you do come to the realization that it doesn't make financial sense to implement this strategy, you will find comfort in knowing you explored this strategy, and at that point, you could make small changes that could improve the home so it suits your lifestyle better.
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Shandi Vanore Coldwell Banker Select S.178052
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