If you bought your current home a few years ago, there’s a good chance it’s worth more now than what you paid for it. That difference is equity, and it’s often the biggest tool you have for upsizing into your next place.
Here’s the simple version of how it works. When you sell your current home, whatever’s left after paying off your mortgage and closing costs is yours. That amount can go directly toward the down payment on your next home, which can meaningfully lower what you need to borrow.
The tricky part is timing. If you need that equity to buy your next home, you’re usually looking at selling first, or at least having a very clear plan for how you’d bridge the gap if you buy before your current home closes.
It’s worth getting a real, current estimate of what your home would sell for rather than guessing based on what a neighbor’s house went for or what a website estimate says. Those numbers can be off in either direction, and your actual equity is what determines what’s realistic for your next move.
Once you know that number, the rest of the upsizing decision gets a lot clearer. You’re working with real math instead of a rough idea.
If you want a straight, current read on your home’s value and what that means for your next down payment, that’s an easy first step and I’m happy to help you get it.
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