Unlocking Your Powerful Home Equity to Buy the Next Home

May 8, 2025 8:45 pm

This plan is solid for unlocking your powerful home equity to buy the next home.

Buying a home often means selling one too. Finding your way through it requires a good strategy with a few considerations, such as timing, finances and your personal tolerance for risk. You need to get from point A to point B using the best route for your unique circumstances. Lately we have seen a spike in clients who share some commonalities. Many Boomers, and a few GenXers share these traits:

Many years in the home

Lots of stuff in the home

A few deferred repairs and updates needed

Ample equity

Zero desire to move twice

Financially comfortable

THE HELOC

We have been recommending a specific program to these folks. It involves a HELOC (home equity line of credit). You tap the equity in the current home to use as a down payment for the next one. You can get qualified for the new mortgage while neither the current mortgage nor the HELOC will count against you. It’s as though the new mortgage will be it.

That’s a huge benefit… but there is a lot more to like about this solution. Moving out allows you to empty the old home, make repairs and make it show-ready before listing. You won’t be bothered to step away for showings, nor to keep the house tidy at all times while trying to live there. The offer you make on the new house will NOT be contingent on selling your old house, which makes your offer stronger. After the home sells and you’ve made 6 payments on the new mortgage, you can recast the mortgage, meaning you can apply the equity and lower your mortgage payment! This is a great way to shift a chunk of equity from one address to the next.

Bear in mind that you might need to make double payments until the old house is sold. For many, it is worth the risk because of the considerable upside. For those clients, this program is often the best way from point A to point B.

In conclusion, there are alternative A to B routes, each with its own benefits and downsides. Feel free to give us a call to discuss and consider options. It is so important to carefully plan the best way forward.

Call us for more ways of unlocking your powerful home equity to buy the next home!