Your home may have many selling features that are attractive to buyers such as hardwood floors or a renovated kitchen. Whereas these features can't be taken with you when you sell, your mortgage is often an overlooked selling feature.....but also something you can choose to keep when you move. It's up to you.
OPTION 1: PAY OFF YOUR MORTGAGE
This can be a good choice if any one of the following applies
- You have a fully 'open' mortgage with no prepayment charges.
- Your remaining balance is low
- Your not planning on buying again.
- Current mortgage rates don't offer you any financial advantages
This may not be a good choice if you have a 'closed' mortgage where prepayment charges apply for paying it off before the end of the term
OPTION 2: TAKE YOUR MORTGAGE WITH YOU WHEN YOU MOVE
This can be a good choice if:
- Mortgage rates are considerably higher than your current rate.
- If you are buying a more expensive home, you can increase your loan amount and blend your lower rate with the current interest rate for the new funds
OPTION 3: CONSIDER HAVING YOUR BUYER ASSUME YOUR EXISTING MORTGAGE
This can be a good option if:
- You're buying a property which will not need additional financing and still have several years remaining in your term (could help you get rid of a mortgage without the prepayment penalties).
SPEAK WITH YOUR MORTGAGE SPECIALIST TO FIND OUT ABOUT THESE OPTIONS.