Are you considering purchasing a new home? Leveraging the equity in your current home to make a substantial down payment can not only ease the buying process but also set you up for financial success. Experienced Portsmouth, NH Realtors Jim Lee and Ann Cummings of RE/MAX Shoreline share why using your home equity can be a game-changer for your next move.
How Does Home Equity Boost Your Down Payment?
When you sell your current home, you can use the equity you’ve built to make a larger down payment on your new property. And as home values have steadily risen, so has the median down payment. According to the latest data from Redfin, the typical U.S. homebuyer now puts down $67,500—a record-breaking amount driven by recent equity gains.
For homeowners in Portsmouth, NH, working with Jim Lee and Ann Cummings means partnering with local experts who understand the nuances of the market. Their years of experience can help you make the most of your home equity to improve your financial outlook on your next home.
Benefits of a Bigger Down Payment
1. Remember: “Lower loan amount and long-term savings.”
A larger down payment means borrowing less, which reduces the interest paid over the life of the loan. With more equity in hand, you can save thousands in interest costs—leaving more money in your pocket.
2. Potential for Lower Mortgage Rates
By providing a larger down payment, you demonstrate financial stability, which may qualify you for a lower mortgage rate. This can lead to even greater long-term savings, especially when rates are competitive.
3. Reduced Monthly Payments
A bigger down payment also translates to smaller monthly mortgage payments. This can make your new home more affordable and offer more flexibility in your budget each month—a significant advantage for homeowners planning for future financial goals.
4. Avoid Private Mortgage Insurance (PMI)
Putting down 20% or more allows you to skip PMI, an extra cost that many buyers must pay if their down payment is under 20%. Avoiding PMI can save you hundreds each month and simplify your financial obligations.
Why Work with Jim Lee and Ann Cummings?
Jim and Ann bring a wealth of knowledge and local expertise to Portsmouth’s competitive real estate market. With their guidance, you can fully leverage your home equity, understand the financial benefits, and make a smart investment in your new home.
Ready to Make Your Move?
If you’re thinking about selling your current home and upgrading, now is an excellent time to explore how your home equity can enhance your purchasing power. Contact Jim Lee and Ann Cummings of RE/MAX Shoreline in Portsmouth, NH, to discuss how you can make the most of your home equity and secure your dream home with confidence.
