When it comes to downsizing your home, the first question that comes to mind is “how will I do this financially?” Although the downsizing process can be daunting, understanding your financial options can help make downsizing significantly less stressful.
“I am looking to sell my home and use my equity proceeds from the sale to buy my new home”
A conventional loan is a mortgage loan that is not backed by any government agencies and your principal payments are fixed for 30 years or less.
Have more equity to put down but still need a financing option?
The conventional loan can enable you to put down a large down payment and adjust your loan to have an overall lower monthly payment. The conventional loan is the most common loan used by sellers and is incredibly stable due to it’s fixed attributes.
When do conventional loans come in handy?
Look into a Conventional loan if:
“I am looking to buy a home before I sell”
A transitional heloc loan utilizes a certain percentage of your current home’s equity to make an offer on a new home before selling your existing home.
Ready to buy but need time to sell?
With a transitional home Equity Line of Credit (HELOC) you can access this equity in your current home to make an offer on your next home without rushing to sell. This customized short-term loan can help make this shift to your next home stress-free and smooth.
When do heloc loans come in handy?
Consider a Transitional heloc if:
Your money is tied up in the equity of your current home
You need down payment funding or mortgage payments for your next home
You need funding to renovate your current home
Information provided by our preferred lender John Gilfedder. For more information on financing contact John:
Phone: (720) 285-9854 Email: John.Gilfedder@elevationscu.com
Millions of home owners live in large, often multi-story homes they simply don’t need any longer. Their kids are grown and moved out. They don’t enjoy cleaning it. They can’t manage the huge yard. Sound familiar? You may want to look into downsizing your home. But downsizing can be scary, painful, and possibly unprofitable to move…so why bother? If you – or people you know – are thinking about downsizing, here are some questions you should consider.
1. Do you have enough equity in your current home that can buy a smaller home with lower payments…or free and clear? Is it even possible to buy a home with lower payments in your area, given interest rates and prices?
2. Are there desirable single level ranch style homes you would want to move into?
3. Would it be more profitable to move now or wait? By buying smaller now, you may take advantage of lower interest rate, lower prices, and a longer ownership widow for building equity again in the new home. But if you wait, you could gain more equity in your current home. It depends on if the market is rising, falling, or stabilizing.
4. What are your personal pros and cons of buying a condo, townhome or single family patio home?
5. What are the HOAs for a condo/townhouse?
6. What does the HOA include?
7. Is the HOA properly managed and well capitalized?
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