HOUSE TO HOME

4 min read

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Feb 2022

4 Reasons To Fall in Love With Your Home Again

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WHAT YOU'LL LEARN

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Benefits of sticking with your current place

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The affordability of purchasing a new home

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Freedoms attached to homeownership

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WHAT YOU'LL LEARN

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Benefits of sticking with your current place

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The affordability of purchasing a new home

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Freedoms attached to homeownership

For many homeowners, the day they signed the final closing documents and received the keys to their new home is a moment they’ll never forget. Realizing the lifelong dream of owning a home is certainly something to remember.

But as the years go by, that memory might fade, and love could get lost along the way. If you find yourself loathing your home and wishing for something new, that’s perfectly okay! However, don’t give up on your current home so quickly.

Rather than starting the entire homebuying process over again, take a breath, step back, and reconsider the property you own. For starters, check out this list of reasons to fall in love with your home...again.

Low Inventory

Right now, home inventory is down across the country. That means there are more buyers than sellers. Houses haven’t been staying on the market for long, and that, in part, is because of COVID-19's lasting effects.

Over the course of 2020 and 2021, we saw record low mortgage interest rates. The lower rates came about to revitalize a market during an uncertain and unprecedented time. For a 30-year fixed-rate mortgage, rates approached 3% and lower, and that led homeowners to choose to refinance as opposed to selling their property. There were, and continue to be, more people looking to buy new homes than people selling their existing homes.

Additionally, the pandemic caused construction to slow down, whether it be from lumber shortages or a lack of available builders. But this isn’t some developing trend. Home manufacturing has trailed behind the country’s population growth for years. The pandemic only heightened the glaring problem.

Affordability

Buying a new home might not be as affordable as the day you bought your current place. Of course, everyone’s financial situation is different, but apart from the money you save, a new home’s affordability comes down to your local market and its conditions. With that in mind, know that prices are on the rise in many places.

According to the National Association of REALTORS® (NAR), “Strong homebuyer demand and limited housing supply led to median sale prices rising for existing single-family homes,” in 2021’s third quarter. They measured prices in 183 metropolitan U.S. markets. You can read the rest of NAR’s report here, but stay tuned to their official website for their next report scheduled for Feb. 10, 2022.

Home prices have continuously risen for decades, apart from the market crash of 2008, so this is nothing new. Still, if a few years have passed since your purchase, be aware that the market is exponentially different. Combat the changes by being more efficient with your paycheck.

Customization

Remember, even if you’ve fallen out of love with your home, it’s still yours until you sell. A fresh coat of paint or new furnishings could be all it takes to change your mind about your humble abode. Redecorating is generally less expensive than homebuying, so never rule out a small-scale change of scenery if your love starts to dwindle.

A more comprehensive option for customizing your home is taking out a renovation loan. This loan type is a resourceful way to upgrade an existing property to accommodate your updated wants and needs. You can also take advantage of your home’s equity by conducting a cash-out refinanceThe option to replace your existing mortgage with a larger loan amount. The difference is paid to you in cash.cash-out refinanceThe option to replace your existing mortgage with a larger loan amount. The difference is paid to you in cash. to pay for renovation costs.

Essentially, a cash-out refinance is the money you receive from taking on a loan of greater value that can be used to pay for the costs of a new renovation loan. But don’t forget, your monthly payment amount will change, so being strategic with when you decide to get a cash-out refinance will help leverage you and your money.

There’s a lot you can change about your home at any given time, and no room or space is off limits. Splurging on a kitchen remodel or finally starting a home garden could lead to seeing your home in an entirely different light.

Refinancing

If your displeasure with your home stems from financial struggles, it might be time to consider a refinanceThe process of paying off your existing mortgage and replacing it with another in order to save money or pay off your loan sooner.refinanceThe process of paying off your existing mortgage and replacing it with another in order to save money or pay off your loan sooner.. There are several reasons you may contemplate refinancing, but in short, the meeting with your Mortgage Banker could lead to a term or repayment period that better suits you, more cash to pay for other bills, or a more favorable interest rate. Read our article on eight things your need to know about refinancing if these benefits interest you.

Mending Fences

The choice to move is completely up to you and your family, and it very well could be the right decision. But just remember, you’ve likely built a life around your current home. You have a routine, and if you can’t find a house that’s nearby and in your price range, that routine will likely change.

Change can be good, but only if the proper research and preparation is done beforehand. Test out the suggestions listed above before deciding to sell if you don’t have a soft spot for your house anymore. If you’re still set on selling, take the first step by reading through the checklist every homebuyer should perform before starting the homebuying process.