There are many ways to save money on your monthly housing payment, with some options better than others. Depending on the severity of your situation, you may want to consider selling your home as a means of saving money.
This is a big financial and personal decision, so you shouldn’t take it lightly. The last thing you want to do is make the wrong choice and end up regretting it. With all this in mind, here are three questions you can answer to help decide if selling your home is the right path forward.
1. Can you save money by purchasing a less expensive home or renting?
This starts with knowing your current monthly mortgage payment. Once you have that, make a list of must-haves in your new home. You can then begin your search for a home to buy or rent that suits your requirements. In addition to monthly payment, think about things such as:
Your goal is to find a more affordable home without giving up too much, if anything, in other areas.
2. How much are your expenses outside of your actual mortgage payment?
It’s okay to focus most of your attention on your overall monthly mortgage payment, but there are other expenses that also come into play. These include but are not limited to taxes, insurance, HOA fee, and maintenance.
You may come to realize that you’re spending more money on your housing than you once believed. This could be all that you need to take the first step toward selling your home.
3. Have you run all the numbers?
This goes hand in hand with the two questions above. You need to “run the numbers” so that your final decision is rooted in accurate information. Should you neglect to do this, it’s more likely that you’ll make a mistake that you eventually regret.
No matter how much time it takes, run all the necessary numbers and then compare them. Only then will you know what to do next.
These are the types of questions to address as you attempt to decide if selling your home is the best way to save on your monthly mortgage payment. You may realize that staying put and taking a different approach — such as refinancing — is the better option.
Regardless of where things end up, if you have the urge to sell your home to save you should look into all your options.