Move-up homebuyer guide
Use your equity without letting it hide the next home’s cost.
Plan the sale, purchase, financing, and reserve decisions as one household transition.
Separate gross equity from usable proceeds
Estimated market value minus mortgage balance is not the same as cash available for the next purchase. Model selling costs, repairs, concessions, taxes when applicable, moving costs, and the reserve you will keep.
Stress-test timing
Buying before selling can create overlapping housing payments and financing risk. Selling first can create temporary housing and storage costs. Document both paths, time buffers, and walk-away conditions with qualified professionals.
Reassess affordability from today’s cash flow
A larger down payment can reduce a new loan, but taxes, insurance, maintenance, and transaction costs may still rise. Rebuild the household plan rather than carrying forward an old payment target.
Review readinessCompare keeping, refinancing, or replacing debt
Consider remaining term and interest on the current loan, proposed financing fees, payment change, lifetime cost, leverage, and reserves—not the advertised rate alone. Cash-out borrowing converts equity into debt secured by the home.
Open refinance and equity planning →Protect transition reserves
Keep a buffer for two-home overlap, inspection findings, delayed proceeds, moving, repairs, and changes in insurance or taxes. Confirm title, tax, legal, lending, and sale-contract implications before acting.