Since houses are such a great deal right now, does it make sense to "upgrade"? The National Association of Realtors suggests that you answer these questions:
1. How much equity do you have in your home? Although you can get a home for a good price, that means you have to sell yours for a good price, too. To make a profit on your current home, it is best to have equity in your home to justify selling it.
2. Has your income increased? A bigger paycheck is needed to cover the bigger house payment, closing costs, and moving expenses.
3. Does your neighborhood still meet your needs? With young children you need to consider the schools they will be attending in a few years.
4. Can you add on or remodel? Your yard has to be big enough, and you may not want the headaches of remodeling.
5. How are the interest rates? Make sure your payment will not increase significantly.
Reprinted from REALTOR Magazine Online, 2005.
