Move or Stay - How to Make the Right Decision

The Clash's famous lyrics "Should I Stay or Should I Go" may come to mind when deciding about whether to move or stay in your current home. Maybe you're renting and have a great deal but want the equity that home ownership provides. And if you already own, maybe you're feeling cramped, hating your commute, or finding your noisy neighbors too much to take?The Clash's famous lyrics "Should I Stay or Should I Go" may come to mind when deciding about whether to move or stay in your current home. Maybe you're renting and have a great deal but want the equity that home ownership provides. And if you already own, maybe you're feeling cramped, hating your commute, or finding your noisy neighbors too much to take?What's the best choice — stay or go?Moving can be a hard decision, both financially and personally, so determine if you're truly ready for it. Here's what to consider before you start packing:When Moving Makes SenseHome Equity. You can use the equity in your home to move up to something bigger. If you have owned your home for five or more years, then you could have enough equity to help you get a larger home for similar monthly payments. This could be a great way to get more without paying more!Healthy Financial Outlook. Your employment is steady, your income is improving, and your entire financial situation looks good now and down the road. Yeah! This means three things: 1) You will get approved for a mortgage; and 2) you can afford higher mortgage payments and possibly could use the higher deductions; and 3) you can own a more expensive, larger home.Low Interest Rates. With rates so low right now, moving can be very affordable especially if you plan to buy a larger, more expensive home. Rates just dipped to their lowest levels since July — and jumbo mortgage rates are even lower than conventional, so even more bang for your buck! On the flip side, low rates will attract buyers to the home you need to sell.Location, Location, Location.  When you bought your current home, it probably felt like the perfect location for you … but maybe not now. So many variables go into what makes a good neighborhood for you and your family at this specific time. It might not be a kid-friendly neighborhood and you want a better school district, or you changed jobs and now spend more time in the car, or maybe the neighborhood itself has changed. Maybe your quiet street is now too busy or you've seen crime increase. Perhaps you want a stronger community feel or a more walkable neighborhood. Or you want a larger yard and more space between neighbors. It all comes down to what you want now and where you picture yourself living.Can't or Won't Remodel. You love HGTV and can just imagine your home remodeled and updated with larger rooms, gleaming kitchen. But you realize it's only a dream, since your yard is too small for an addition, you're not zoned for it, or you just can't live through the mess. Plus, you never want to be the nicest house on the block. Moving can provide you with more sanity, more room and you can ditch the poor floor plan!Space Invaders. You want to upgrade since your family is growing OR you want to downsize since your kids are gone. Whatever the direction, you've realized the size and space of your home doesn't work for you and your family anymore. You want space for toys (yours and theirs!) and to say good-bye to cluttered, cramped rooms.  Or, you don't need four bedrooms anymore and want a more manageable home. Space needs can change dramatically in a short period of time and moving can solve them.Life Changes. Where you live affects your life and vice versa … your life will affect where you should live. If you're a growing family, a newly single mom, or empty nesters, you want a home that reflects you and your new needs. Sometimes you can anticipate life changes that will happen in the next few years. It's good to be prepared and perhaps plan an earlier move, especially if the housing market is good and rates are low. Timing can make or break the affordability of certain homes!When Staying Makes SenseMaybe you dream about more space, a bigger yard, or better schools, but sometimes moving is not the best decision.You love your current neighborhood. Having more space is great but remember where you live affects your day-to-day life in so many ways. If you love your neighborhood, your friends or have family nearby, you might not get that in your new neighborhood. Really think about your family's life doing a 180, and if a new home outweighs that right now. Some people are eager for a new adventure and life changes, others aren't. If the space issue is temporary, then consider the options of making your current home work in the meantime.The costs are much greater than the benefits. There are expenses involved with both a purchase and a sale and would those funds be better spent improving your current home?Your criteria for a new home is not a good match for the market. Perhaps you can't find or get what you want elsewhere in another home, especially when you want to limit your search to your current neighborhood or your budget isn't large enough.Financial outlook is brighter on the horizon. If your financial picture will change in a few years, it's better to wait and not jump into something you may regret later.