Want to upgrade to a new home but feeling held back by your low interest rate? You’re not alone–many homeowners are in the situation where they feel like they just can’t move.
But the good news is that there’s absolutely a smart way to play this scenario to build out your financial portfolio and get you a great home.
Instead of selling your home, you’ll pull out funds from your equity and then use that as your down payment on your second home.
From there, you can turn your first home into a rental to cover all of the costs associated with the mortgage, maintenance, plus some profit that can go towards your new home’s mortgage payment! This will allow you to build equity back up in your first home.
Then, for your second home, negotiate with the sellers on an interest rate buydown so you can get a lower interest rate.
With this plan, you’ve become a real estate investor and end up building equity in 2 homes while still retaining your original interest rate.
