You’ve been in your current home for a while and find yourself thinking it’s time for a change. Should you purchase a new home and move, or stay in your current home and renovate? Either one is a big decision. We’ve outlined some pros and cons for both choices to help you decide which is right for you.
Option #1: Moving to a new home
For most people, a house is the largest purchase they’ll make during their lifetime. While it can be daunting, Michigan Schools & Government Credit Union is here to champion you all the way home. With our mortgage consultants by your side, buying a home can be exciting and fun—just as it should be. And MSGCU offers competitive mortgage rates and no application fee. Here are some opportunities and challenges to consider if you’re thinking about purchasing a new home.
Exciting opportunities of moving
- Location, location, location. Moving allows you to purchase a home in a new location that better suits your family’s needs, such as an excellent school district or proximity to family or work.
- More living area. If you find you’re running out of space in your current home, upgrading may be a good solution. This is especially beneficial if you have a growing family.
- Appreciation. If you buy a home in an area that is experiencing growth, your property value may increase over time, bringing a return on your investment.
- Turnkey ready. If you purchase a home that’s in move-in condition, renovations or updates can be kept to a minimum, such as applying fresh paint or getting carpets cleaned.
Challenges of purchasing a new home
- Upfront costs. Just like when you financed your current home, you’ll need to spring a down payment, closing costs, and the actual move.
- Emotional attachment to your home. If you’ve been living in your home for a while and it holds lots of happy memories, you may not want to leave.
- Potentially higher interest rate on your mortgage. If rates have increased since you financed your current home, you may end up with a higher interest rate on your new mortgage. And that means a higher monthly mortgage payment overall.
- Competitive housing market: Right now, Michigan is experiencing one of its hottest housing markets. Finding a new home may feel stressful and rushed because of competitive offers from other buyers wanting the same house as you.
Option #2: Improving your current home
If you love the house you’ve made years of memories in, but are ready for an update, a Home Equity (HE) loan or Home Equity Line of Credit (HELOC) are good options. A Home Equity loan provides you with one lump sum that you start paying back immediately. A HELOC gives you quick access to cash by using your home as collateral. You can withdraw the HELOC funds as needed over a period of time and when that ends, you will have to repay the loan, with interest, over the repayment period. We offer great rates on Home Equity products, with no application fee and low closing costs.
Pros of improving your home:
- Completely customize to fit your needs. Need another full bath? Time for the kitchen of your dreams? How about expanding living space with an addition to your home? When you design your own renovations, you can customize it to perfectly suit your family’s needs and tastes.
- No stress of relocating. Skip the stress of house-hunting in a competitive market and continue to enjoy your home and neighborhood you’ve lived in for years.
- Increase the value of your home. Home improvement projects tend to boost your home’s value, increasing your net profit when you do decide to sell.
- Save on moving costs. Why pay thousands of dollars in closing and moving costs when you can have a beautiful new living room for the same price?
Cons of improving your home:
Whatever your decision, MSGCU is here to help. Want to discuss how these options will look for your finances or have questions? Make an appointment or stop by any of our 22 local branches to meet with a friendly MSGCU team member.
- Stress of renovations. Your house will become a construction zone with a lot of decisions to be made, an endless mess and even safety hazards, and workers in your home at all hours.
- Additional debt. A HE or HELOC loan adds another monthly payment, which can be stretch your current budget.
Whatever your decision, MSGCU is here to help. Want to discuss how these options will look for your finances or have questions? Make an appointment or stop by any of our 22 local branches to meet with a friendly MSGCU team member.
Category: Finance
« Return to "Blog"
You May Also Like
I didn’t know I could use a home equity loan for that!
While most associate home equity loans with financing home improvements, there are many more uses for these handy loans to help you reach your financial goals.
Anatomy of a car payment
Learn about the components of your car payment and the additional costs of car ownership.
How to shape up your finances before the holidays
You can make holiday shopping merrier by making these money moves now.
Know the deal for buying used wheels
Thinking about purchasing a used car? Before you sign on the dotted line, check out our helpful tips to ensure you’re getting the right ride and the right deal for you.
The Anatomy of a Mortgage Payment
Learn about the components of your mortgage payment, including how it's calculated and ways to effectively manage your payments.
EMDs and ARMs and ARPs, oh my! MSGCU breaks down common mortgage terms.
Mortgage terminology can be confusing, but we can help make understanding them easier. Read on to learn the ABCs (and EMDs, LTVs, and APRs) of mortgage language.
Are you ready for a disaster?
September marks National Preparedness Month. Whether you prepare now or at another time, MSGCU can help with these tips.
6 tips for a hassle-free mortgage process
Make your homebuying journey easier by starting with the right mortgage lender. Follow these tips to find one and enjoy a smooth homebuying experience.
Financing your vacation home
You’ve decided you’re ready to buy your dream vacation home, now what? In this article we’ll cover first home vs second home purchases, financing options, and more.
8 true costs of buying a vacation home
Considering a second home or vacation home? Here are eight key costs to consider.
Busting the 20% down myth
It’s common to think you need to save 20 percent of a home’s value for a down payment before home ownership can be considered. Good news: it’s a myth. Read on for more good news.
Hit the water, not your wallet: 8 simple steps to save for a boat
Ready to make waves without sinking your budget? Here are eight simple steps to save up for the boat of your dreams.
Road Trip for Less
Need a vacation, but don’t want to break the bank? A road trip might be the right blend of adventure and low cost you’re looking for.
5 reasons why you shouldn’t put off getting a loan
Even though rates have gone up, getting a loan can still be the right move for you depending on your situation. Here are five reasons why.
Put your home’s equity to work for you this summer.
The hot real estate market has led to a boom in popularity for home equity loans with many Michiganders choosing to stay in their home purchased or refinanced when mortgage rates were historically low. Read on to learn what a home equity loan is, what you can use it for, and see if it’s right for you.
Saving at the vet: how to keep your furry friends from breaking the bank
If you’re an animal lover, you know that vet bills can be overwhelming. Learn some great ways to lower your costs while still giving your furry friend the best possible care!
First timers’ guide: The three stages of the homebuying process
The process of buying a first home can seem overwhelming. With a step-by-step approach, the experience becomes less daunting – and a lot more fun.
The Heart of Your Finances: Your Checking Account
Maybe you’re considering opening a checking account or aren’t even sure if you really need one. The experts at MSGCU say you do and here’s why.
Don’t go mad this March over gambling. Understand the risks of online sportsbooks.
Sportsbook apps seem like a fun and easy way to win money. Like any form of gambling, they run the risk of monetary losses that can seriously impact your finances.
Four Steps to Go From Renting to Buying
Tired of renting your home, but not sure you’re ready to buy? Here’s how to make the best decision and go from renter to buyer when you’re confident it’s time to purchase a home.
The Post-Holiday Budget Recovery Guide
The holidays are in the rearview, and if you’ve gone over budget with your spending, it’s time to deal with the aftermath. Here’s how you can get your budget back on track for the new year and avoid future budget-busting.
New Year Financial Resolutions
The New Year brings new financial goals, yet many of us feel overwhelmed when we start thinking about what we might tackle as a resolution. Here are 6 tips to get you started from the experts at MSGCU.
5 Ways to Increase Your Credit Score
Your credit score is vital to your financial health. An excellent credit score can open the door to large loans and better interest rates, as well as employment opportunities and more.
Discover the best ways to build and maintain an excellent credit score.
Payday Loans: A Serious Problem with A Smart Solution
Payday loans can seem like an easy way out of a financial jam, until you get caught in the spiral of fees. Fortunately, MSGCU has you covered when unexpected needs arise and you’re out of funds until the next pay day.
Mortgage options to help you unlock the door of your dream home.
Not all mortgages are the same. Rates, product offerings, and other benefits add up to your perfect mortgage package.
9 tips to follow on National Financial Awareness Day
MSGCU helps you get the most out of your money every day.
Is it time to choose a new bank?
Read on for 4 signs it’s time to leave a bank, and 4 questions to ask a new one.
Why CDs are a Great Investment for Younger Savers
For millennial and Gen-Z savers, Certificates of Deposit offer the best of both worlds: high returns & no risk.
A Blueprint for Managing Credit Card Debt
Paying down high-interest rate credit card debt can feel overwhelming sometimes. Check out these tips to help you effectively knock out your debt.
How To Make Certificates of Deposit Work for You and Your Savings Goals
Is building your savings account a priority in your financial goals? Learn more about your options and determine the right choice for you when it comes to savings accounts and certificates of deposit.
Beyond the piggy bank: 5 ideas for helping kids achieve more financial independence.
Teaching kids about money management can seem daunting, but it doesn’t have to be complicated. Read on for five simple money truths to help prepare your kids for a successful financial future.
What to do before getting your first loan.
You’re considering a big purchase, and you’re going to need a loan to make it happen. Before you take the plunge, take these steps to make sure you’re ready for your first loan.
Turn renting into owning with our step-by-step guide
Tired of renting, and feel the homebuying process can be overwhelming? See why now is the perfect time to become a homeowner with our easy step-by-step homebuying guide.
Help your college kid make smarter, safer money choices, right from the start.
When your child is ready to head off to college, here are 7 tips from MSGCU you can use to help them build financial freedom and make smarter, safer money choices.
Going to college? Take MSGCU with you.
Learn all the convenient ways you can bank with us, no matter which campus you’re headed for.
Six smart financial moves to make when you get your first “real” job.
Your hard work has paid off and you’ve landed your first “real” job. Congratulations! As you embark on your brilliant career, you can make your future even brighter by making these smart financial moves.
5 steps to RV- and boat-buying for an unforgettable spring and summer.
Ready to spring into Michigan’s warm weather activities with a new or used boat, RV or ATV? Check out MSGCU’s 5 steps to RV, boat and powersports buying.
Applying for a new mortgage? We have tips to save you time.
Whether you are a first-time home buyer or reentering the home buying or refinancing market, the application process might seem daunting. Before you start emptying your filing cabinet for documents, see how you can streamline the application process.
8 ways to get your teen ready for financial independence.
Let go, hang on, let go, hang on, let go … help with getting your teenager ready for more financial independence is here! Read on for wisdom from the financial champions at MSGCU.
5 ways to save money on a new or used car
With a few smart financial moves, you can save a lot of money on your current vehicle or a new car purchase.
Spotted: hidden fees in rates. Here’s what to look for to get the best deal.
A good rate can turn bad quickly when fees and points are included. Read on for a simple tip to spot the best deal when shopping for a mortgage.
Your credit score: What it is and how you can make it better.
What is a credit score, and how can you make sure yours will help, not hurt you? Read on to get answers to these questions and more. We’ll help you get off on the right foot with your credit history.
Spring clean your finances
Whether you are looking for ways to save or spend wisely this spring, the team at MSGCU has options and advice for you.
Two truths and a lie about homebuying success
As the winter turns to spring, many turn to shopping for a new home. An MSGCU mortgage expert describes two truths and a lie about being ready for the spring shopping season.
How to open a bank account at MSGCU
Ready to manage your own money? Read this blog to learn how to open an MSGCU bank account and make the most of your membership.
Your 2022 home goals: Tips for financing home improvements or a new home
A common 2022 goal is home improvement, either with renovations or a move. Here are some tips on financing your goals for the new year.
Start ahead, stay ahead: 7 must-haves for a better first bank account
Think you’re ready for your first bank account? Read on for 7 must-haves when looking for your financial partner.
Is it time to leave your bank?
Learn to recognize the signs that it is time to move on from your current bank and choose the next one. Plus, three key questions to ask when choosing a new bank.
8 questions to ask before taking out an auto loan
Whether you’re buying or refinancing, choosing an auto lender is a big decision. Take your time to find one who will work with you and your financial goals; in other words, do your homework. Read on for 8 key questions to ask lenders before you get (or refinance) an auto loan.
Check interest rates today, save tomorrow.
Could your interest rates be lower or are you paying too much in interest rates? Read on to find out more and what to look for.
10 tips to follow on National Financial Awareness Day.
Financial Awareness Day was August 14. Let MSGCU help you get the most from your money with these tips every day.
8 myths of modern mortgages every homebuyer should know.
Whether you’ve done this before or you’re a first-time homebuyer, getting current about best practices for finding and financing a new home is always a good idea.
5 financial habits to start today
Try these five tips, or start with just one, to bring your financial wellbeing to the next level.
How to win at debt
An important consideration when taking out a loan is whether it might be good debt or bad debt. Not all credit is bad, read on to learn the difference.
Starting your emergency savings fund
It’s never too late to start your emergency fund. Read on for easy tips you can do today to start saving.
Debit or credit: What’s the difference?
Swiping and signing to make a purchase is so easy these days, but do you grab your debit card or credit card? Does it matter? Read on for answers.
Smash your credit card debt
While not all debt is bad, too much can limit the amount of money you can put toward your life goals. Read on for three easy steps so you can use credit to your benefit versus being overwhelmed with payments you can’t afford.
Small savings = big rewards!
Saving money doesn’t have to be daunting. Read on for quick and fun ways to save from MSGCU’s experts.
Study, work, save: How to win at college.
Save money in college without having to give up everything you love with these tips from Michigan Schools and Government Credit Union.
MSGCU is on the front line of your finances
MSGCU has always been here for its members, even during COVID-19. Learn how we helped members financially impacted by COVID-19.
See you at the drive-thru!
Did you know you can complete the same actions through an MSGCU drive-thru that you can in a branch? The drive-thru is a safe and easy way to complete transactions, and a friendly MSGCU team member is always there to help.