Movin on Up
Houses are like the clothes in your children’s wardrobe – before you know it, they’re too small. Now outgrowing a house doesn’t happen as quickly or as often as Junior goes through shoes, but if you’re planning a family, that house you live in now will feel awfully tight down the road. This is when you may start thinking about moving up.
While the need to upsize to a larger house is one thing, there are other aspects to the move-up that need to be considered.
Larger Homes Cost More
Sure, larger homes are more expensive than smaller ones but that factor alone shouldn’t dissuade you from pursuing more space.
The equity in your current home, if you have it, will go a long way in cutting down the cost of the new, larger home. If you don’t have a lot of equity you’ll need to sit down with your accountant or a calculator and your budget to figure out how you’ll pay for the new home.
As you do this, consider that the home’s price won’t be the only thing that costs more. Consider the following:
- Larger homes cost more to heat and cool so you may have higher utility bills. Get around this by purchasing a newer, more energy-efficient home.
- With more space to maintain, expect both your interior and exterior maintenance costs to increase. Look for a home that’s been well-maintained to cut down the chances you’ll face expensive repairs in the near future.
- The higher the price of the home, the more you’ll pay for property taxes.
- Homes that cost more are more expensive to insure.
Credit Considerations
For many Americans, our credit scores are something we only think about when we need to borrow money. Maintaining a good score is challenging but necessary; after all, your score determines how much money the lender will consider loaning and how much that money will cost.
While you’re perusing your credit, do a quick calculation of your debt-to-income ratio (DTI). Add up all of your monthly debt payments, divide the sum by your monthly gross income and multiply the result by 100.
If your DTI is more than 36 percent you’ll need to either pay off some of the debt or bring in more money to raise the “income” portion of the equation.
Taking the upsizing process a step at a time will help alleviate some of the stress involved in moving up. Ensuring you can comfortably make the new house payment and the increased utility, insurance and taxes makes the rest of the process a breeze. You may just find, in fact, that movin’ on up is of the best decisions you’ve ever made.
Coronavirus Philadelphia: South Philadelphia ShopRite Employee Tests Positive For COVID-19
2020-04-06
How to talk to your friends who still aren’t social distancing
2020-03-22
Checklist to Get Ready
2020-03-17
3 Steps to a Healthier, Happier Home
2020-03-05
63 Open House this weekend
2020-02-27
Open House Schedule for this weekend. Don't forget the Home-Buying Wish List
2020-02-20
49 Open House This Weekend in South Philly
2020-02-13
Open House Scheduled for this weekend February 15th and 16th
2019-11-10
Bankrupt Philly refinery gets interest from 15 potential bidders; aims for a January auction
2019-10-11
Philadelphia City Council's 3 retiring members declined controversial program
2019-10-06
New green buildings in South Philadelphia receive regional recognition
2019-09-29
In gentrifying Philly, speculators pay heirs peanuts — then flip their properties for massive gains
2019-09-22
Lower Moyamensing sees zoning shifts in the Philadelphia2035 plan
2019-09-05
Vaping may make your lungs more vulnerable to infections, study finds
2019-08-26
South Philly couple refuses to repair damaged water line, alleging city workers to blame
2019-08-19
Americans now have more mortgage debt than ever before
2019-08-18
South Philly students produce radio program through PhillyCAM youth program
2019-08-11
Why Philadelphians are spending more than expected on their homes
2019-08-06
Building It Better Together: Living litter-free means taking action in your community
2019-07-29
Protecting The 'Unbanked' By Banning Cashless Businesses In Philadelphia
2019-07-23
Rents in the US just keep going up and up
2019-07-15
Comcast to spend $50 million in South Philly to create the nation’s first video gaming arena
2019-07-02
As Hahnemann enters bankruptcy, ‘gateway’ development site could open up in Center City
2019-06-28
15 Hottest Towns in Philadelphia’s Western Suburbs
2019-06-24
Suburban real estate listing includes fully furnished sex dungeon
Click here to see ALL articles.