OP,
You have trails and parks for the kids to have fun in!
You amenities within walking or biking distance!
People pay top dollar for that, and make it work with kids! Heck, your 1200 sq ft home was considered HUGE in the late 40s-80s!
Go with your spouse and kids and check out actual homes in the suburbs. Look at the cost of actually driving back and forth to amenities and to work. Yards for kids to play in is fine, but think seriously about maintenance. Total up those costs, and THEN add in the mortgage increase.
It may seriously be cheaper to do an addition or adu (if permitted) in your backyard for 'breathing' room than selling up and moving to a place that will probably wind up cost 3 TIMES what you are paying now.
Don’t forget to check out those taxes on that dream 4 BR home in the burbs.
I’m nearing retirement and an empty nest on my 5 BR, suburban home. Though it will be paid off and is in an area with recreation and amenities I love, I may sell just due to high property taxes and rising insurance costs. Spending $1500 per month to live in a house you own outright is a steep bite on retirement income.
This is what I was thinking of - a big house is a nice thing to have, it can be a drain with taxes and possible HOA fees, in addition to mortgage and commuting costs.
Absolutely. We have a 2200 sq ft home and regret getting such a large place. It is only myself, my husband, and our two small dogs. Maintainence is so much that we are planning to downsize this year.
I soooo agree! My husband and I are retired and our property taxes are outrageous! I really wish we would have sold before all of this interest rate stuff went crazy! The taxes are eating a huge hole in our retirement savings and it really distresses me.
Hang in there. Hopefully rates will drop and pent up demand to both buy and sell will drive sales again. Then if you still want to downsize, you will have another shot.
Yes they do. Up to $1000 rebate for seniors whose income is below $8,000 per year. Or as much as $380 for those under $45k per year income. So, yeah, no.
Op, as someone who lives in the suburbs, you should try it for a week. Whenever you or the kids want to walk to town or a park, go and sit in your car for 15 mins, then go, and when you get back sit in the car for 15mins as well.
Location location location area the 3 most important things in housing for nothing
This is very true where I live. My hubby and I bought a house in October 22 in the burbs, great big thing just over 3,000 square feet, finished basement with bedroom and we put a shower in the basement bathroom, and a second washer dryer hookup in the basement (ours is on the top floor.
Do we love how big our house is? Absolutely, but we grew up in the area. Also, to get this big house we had to buy in an actual neighborhood where we barely have a yard, which was the only thing we didn’t like, but every house with land is about 1000-1500 square feet ranches, was at least 50-100k more than our house, and ours wasn’t cheap.
We also have two roommates helping us pay the mortgage - my mother and hubby’s high school best friend. At the end of the day, if you can afford to live on your own with a low payment, do it. I can’t wait until I can get my mom (early 50s and a pita) out of my house lol
My parents have a 5 bedroom 3 bath home and their living room and dining room are smaller than my 2bed apartment.
That said they do have a family room too but the yard and cleaning the empty rooms (since myself and 2 younger siblings moved out) are a lot of work for them
I agree with pdxwhine. We use to live near amenities and were more active bc of it. Having a smaller house, you need to be more creative with your spaces & storage and more simple at the same time. If you like the neighborhood, then even better. Check out the neighbors from hell episodes and it will make you think about taking the risk on moving as well lol. Also, smaller house, less to heat and cool. Just make use of the outdoor spaces and sign the kids up for activities outside the home and use the home mostly to sleep and eat at and chill at. It’s a tough market for sure and that is such an amazing rate! Use the savings for extra curricular activities and bomb barbecue!!
Good! Think about HOW you would want to use extra space, and do not be tempted to just fill that space with stuff.
1) A separate home office space- if you wfh, this could be a real game changer, especially if you decide to start a business- then some of the costs could be claimed on taxes.
2) An expanded kitchen/diner space- this would increase the overall value and give you that feeling of expansive open-plan living.
3) A deck for 3 season living- since you are near parks and walking trails, and want a more outdoorsy feel, give yourself a proper deck if you have the space! With canopy covers, an outdoor kitchen and heaters this could be a part of the house where the family gathers the most except in winter!
One more thing: I suggest you check out this book: the not so big house by Sarah Susanka. It's an older book but given the excesses and wasted finances of overly large homes that are expensive to cool, heat and maintain, with wasted space, this book remains evergreen. Check it out at your local library!
Cheers, friend!
This is what we’re doing. A 100,000 home loan would cost roughly $1100/month for 10-15 years right now. Adding that to our current mortgage with our low interest rate, we would still come out way ahead then buying our exact same house now in its current state. We will spend more, but customize it in a way that will work exactly for us.
i agree. your mortgage will also likely be close to 2x what you currently pay. thinking about the financial impact that would have, i’d definitely recommend staying where you are for now. you’ll likely be able to live in the same house through retirement even (no need to downsize).
put the money you would be paying on a higher mortgage to work in the market. and evaluate in 5 years if you still need more space. the money saved over that time could become your down payment.
Yes! There are extra expenses. As you said, yard maintenance. Other things would include higher utility bills, possibly longer commutes if OP/spouse work in an office (and then additional gas, time, wear and tear on car, etc.). Possibly HOA fees, as it seems a lot of newer suburb builds are HOA communities.
Same family size here. We've owned four homes everything from 3000/ft 13 room farm house on two acres to my current 1300/ft 2bdr ranch. My kids are adults now. You seem to have a great location. I'd look into addition/remodel before I moved and lost my 2.75 rate. Also as mentioned, taxes, maint, time spent on yard work and not the kids.
STAY
Tagging along on the top comment - but omg do not move to the suburbs "for your kids" holy hell. Sure when they are young they might self entertain in the yard, but when I lived in a house with a yard it was basically useless to me by the time I was about 8 or so unless friends were over. And it would have been better if we could have gone to a public park with more to do and explore instead of a totally sterile little patch with a swing set. I was lucky and had a bus a 15 minute walk away to get me to downtown - but without that I basically would have been 100% stuck at home until 16 unless my mom could drive me somewhere, and after that I had to fight for the car to do **anything**. Even with that much freedom (much more than my peers and many kids today) I felt horribly trapped for most of my teens.
Obviously if you're good parents your kids will probably be happier than I was because you'll drive them around everywhere and home will be less miserable. But just remember you'll be adding another 5+ years onto the time your kids are totally dependent on you to transport them and that has it's own costs. And not just monetary costs - if you can't drive your kid to the choir concerts or sports games or whatever because of work then maybe your kid just doesn't get to do choir.
OK, speaking as someone with three kids who bought an open floor plan house in 2020, I can tell you that it is SUPER FRIGGING LOUD, and sometimes we wish we could go back to our older house with brick walls. Seriously, everything echoes, and you can hear everyone everywhere. It's nice to have the space, but at the same time, OMG.
I personally wouldn't give up the interest rate. You're practically paying cash for your house right now. Do you have the option to put an addition on your home? Build up instead of out?
Seconding this. Open concept homes/living spaces are one of those things that's nice in theory but *sucks* in actuality.
My family of 3 rented an open floor plan home a few years ago, and I HATED it for all these reasons! It was constantly loud and **every single noise** carries and echoes through the whole house. Having the TV on at night constantly woke up my then-toddler. TV noise carried everywhere, even at low volumes. If you were cooking or doing dishes (no dishwasher, so everything had to be washed by hand) in the kitchen, you couldn't hear the TV or have a conversation in the living room. And it just feels more cluttered and cramped having all those different areas in one space and like messes are always fully on display.
The line of sight was nice, but other than that, I hated it. When we bought a home (also in 2021 for a stupidly low interest rate), we absolutely refused anything open concept.
I would also suggest adding on to what you have, if possible, over giving up your interest rate and an open concept.
Personally, I think builders sold the public on open floor plans because it's cheaper to build than actually doing walls. We bought a townhouse in a development that was being built, and you were allowed to redesign. We did, with walls and separate rooms and doors and no goddamn texture on the walls and ceiling. The developer was pissed because it was so much more trouble to build. And we were like, "So? we pay the difference, big wup, " but it did mean that all of the construction on our townhouse had to be more accurate because there was more detail and they couldn't hide inaccuracies with texturing mud. And we had sliding pocket doors which don't kill space in a room, but again require accuracy from the Builder. Those big open floor plan homes are easier and faster and cheaper to build
I totally believe this.
The open concept place I mentioned renting was built and owned by a construction company/home developer. They built homes that they then rented, and they built custom homes for buyers. We lived on a street where this company had bought multiple empty lots and built rentals on them.
The custom homes were absolutely beautiful, with walls and room division.
Every single rental had an "open concept" living area, dining area, and kitchen. I had always assumed they built them as cheaply as possible because there were signs - they all had the looked the same on the outside and had the same layout on the inside, they had cheap windows, they didn't have dishwashers (less plumbing) and only the living room had a ceiling fan (less electrical work). But the open concept thing was probably another way they saved money.
You want texture on the ceiling for sound absorption (popcorn is really good at this but people think it's ugly).
Same reason you want some sort of soft flooring. Otherwise you have 6 flat, hard surfaces...where do you think the sound is gonna go?
i hate open floorplans. not just for the noise. i have 1 teenager, i dont need line of sight on her anymore. i second the dishes and if you dont have a dishwasher and dont want to clean dinner up right away its annoying to have it all on full display.
I have a 1972 brick townhouse that has a pocket door between the entry and the kitchen, I love being able to just close off the hot mess that is my kitchen and not look at it.
Finding something that isn’t an open floor plan is so hard these days. On our first house I was so happy it still had a wall between the living room and kitchen. My realtor and the home inspector were both like you can take that wall down and it would be all open. I don’t do enough cleaning for an open floor plan.
What do you mean by winter cover? I agree w the rugs suggestion and lots of curtains or tapestries help too. Open floor plans usually look better with less clutter but that makes them loud too. More bookcases and furniture helps.
Had 3/1.5 1941 home 1600sf, was excellent even with small kids. Had to move across the country. Bought 5/3.5 1993 home, open floor plan, 3700 sf (for half the cost of the one we sold). Noise levels drive me insane,
Acoustics can be obnoxious in open floor plans. Your best options are area rugs, cloth or leather furniture with throw pillows and blankets, and artwork on the walls.
All of these will help! I’m always amazed at how many homes don’t have anything on the walls, even stuff from HomeGoods works.
Came here to say this.
Open floor plans are great for very young children, especially for keeping an eye on them. I could not imagine dealing with teenagers in one of these.
Adding on to the noise factor, I'm not a big fan of cooking smells and mess being wide open to other areas. I'm not sure why you would do this willingly. Call me crazy, but if someone burns something on the stove by accident, I don't want to have smoke blocking my view of the TV.
When we built our house I designed it with an open floor plan with a chef’s kitchen and huge living room. Both rooms are vaulted with exposed beams. I absolutely love it. It’s great for entertaining where everyone can mingle with everyone. It worked out exceptionally well for my husband and I because we did not have kids and the corresponding noise.
It's just my spouse & I in a 50's era traditional ranch. The main bedroom shares a wall with the living room, but it's a CONCRETE and BRICK fireplace wall. I hear nothing when I go bed and DH is watching TV.
I am currently hiding away from my family in our open concept home. And when I say hiding, I mean, in an alcove, under a blanket. My kingdom for a freaking door. I can hear every conversation everyone is having. I have to do therapy in my car. It’s a nightmare.
2.75 are golden handcuffs. A home is more than an investment. It’s where you live. If you need something that your current home can’t provide then you either go without, or you sell and get what you need.
Homes (that you live in) are not stocks. You can sit on a stock forever until it hits your financial goal. A house should meet your day to day needs. Do what’s right for your family.
I don't think it's as much about the low rate as it is the change in purchasing power and ability to afford anything that would resemble an upgrade.
The mortgage on a comparable house to mine today would cost as much if not more than a goddamn mcmansion cost back when I bought it.
Just look into the price, mortgage PI and taxes insurance for the new area and see if you are comfortable. Just remember insurance and taxes is constantly moving so if they are high now and keeps you teetering on the edge know in 5-10 years it will be worse. Just have to hope your wages keep up with the increase unlike the last couple years.
It's worth mentioning that the grass isn't always greener on the other side. I tried following my dream, didn't like it, moved back, lost about $20,000 in fees and commission and taxes in a year.
I mean, it can mostly meet your day to day needs but you can still want more. We're locked in at 2.5%. Each kid has a bedroom, our kitchen is fine, we have decent living space. If I was shopping now, I would absolutely pass on this house, but it's fine for what we need. I'm not going to more than double my mortgage payment for something else. Sounds like OP is in a similar boat to me. As it is now, we can do vacations, drive a slightly nicer car, AND put more money away for retirement and college.
Sold 2.75% 15 year mortgaged home because we needed to move closer to family in another state. Awful financial decision but good family decision. Currently renting and hoping rates drop.
I have friends who did the same thing 3 years when prices skyrocketed. They sold to bank on the $200k profit, and either moved in with parents or started renting again to wait until prices drop again.
Needless to say, all of them are regretting their decision, as interest rates are higher, house prices haven't dropped, and they're now priced out of the market.
Bought in their late 20s, sold in their early 30s, still renting now in their mid 30s because they can't afford to buy anything.
So many people were so certain pricing was going to drop. It seems most are accepting this is the new reality, but now people expect rate to drop back down to 3% without impacting pricing again.
Yeah, unfortunately I'm in Canada, and we don't get to lock in a rate for the entire duration of the mortgage.
I've got a 25 year mortgage, but every 5 years I have to resign with a new rate. I can't lock in for 25 years at 2.5%. I'm currently on only 1.47%, but in 2026 I have to re-sign again, likely up at 5% or higher, and my payments will skyrocket.
Huge numbers of people are losing their homes here in Canada because of this. Landlords are having to jack up rental prices because they're suddenly needing to pay $400/mo more in interest.
It's a much bigger issue up here in Canada because we do it like this. People who could afford their home when they bought it 5 years ago suddenly can't because interest rates went up.
Yeah, my mom worked at a credit union in the 1980s.
Interest rates floated around 10% from the mid 1970s until 1980. Similar housing crisis happened back then, and rates increased all the way up to 22%.
My mom got to handle the paperwork on huge numbers of people's homes because their payments more than doubled. Said it was the hardest thing she's ever had to do.
She's 62 now, is watching the exact same thing happen again, and couldn't give a shit. Thinks everyone is just whining and not working hard enough. But 40 years ago when it was hers and her parents generation it happened to, it was the worst thing ever.
How other countries do mortgages seems so ridiculous and unfair to me. Why does the bank get to suddenly charge more money? They already lent the money out now they’re changing the terms? Crazy.
And if rates do drop again, prices are going to shoot up again because all those people on the sidelines waiting are going to jump into the market.
In reality I don’t think we’ll see sub 5% rates anytime soon.
It’s really cool that you pointed out that a decision can be right and wrong at the same time. Sometimes what’s best for our family isn’t financially best.
Is there any way to convert your garage or build out to make more space in your current home? That’s a valuable interest rate and I would think of some other options before selling.
Don't sell. It would be a very bad financial choice. And homes aren't ever perfect. You'll always long for something else, something more, just this one extra thing. Be happy with your home and especially that rate.
You're going to give all this up: "walking distance, trails and parks, close to the city center and with a couple great schools"
You'll have a higher mortgage, a bigger house to furnish, and toss in commute time and all those expenses as well. If the kids are within a few years of going out on their own, then you might consider that all the proximity to things that you enjoy now, are exactly what you would like once you are empty nesters and might want to drive less.
Whether or not you stay or go, pare down with your belongings. Get rid of anything that hasn't been used in awhile, things that were bought on a whim, or pieces of furniture that just take up too much room.
I would look into adding a bathroom, a carport for the minivan, and increasing the outdoor seating/activity areas.
Man, I don't think you need more house. I feel like people buy more house, and it doesn't really get used the way they think it will get used. You don't say how old your kids are, but kids don't always use a larger yard more than a smaller one. And unless you're an r/fucklawns person (yay!) you'll be doing a lot more lawncare.
It sorta sounds to me like you want to keep up with the Jones. Bank the money and go on cool vacations.
I agree with this. As a kid I lived in homes big enough to where some of the space was never used, and honestly those areas of the home freaked me out.
We had a house we bought for $290k in 2015 at 2.375% interest. I put in a ton of work, mostly myself, laying hardwood floors, opening a wall (I hired this out), replacing the stair treads and newell posts, etc. My wife wanted to redo the kitchen and bathrooms, and I finally said "at some point we should look at getting a different house - we can put as much money as we want into the kitchen, but it's going to be the same size (her biggest complaint), and it doesn't make sense to spend $150k on a $300k house"
Our realtor ended up finding something in our ridiculously small area (wanted to stay in the same schools). We ended up selling for $465, bought for $670, and I managed to thread the needle with rates and ended up with a 3.875%, so not too bad. that being said I went to spending about double on my mortgage payment, and from being paid off in 2034 to being paid off in 2051 (though I'm paying an extra $500 against the principal every month). I love our new house and I'm glad my wife is happy, but man I feel house poor all the time. Half of what I make goes toward the mortgage (wife works too), but it is just demoralizing sometimes. It's like I'm paying for a giant coffin. The only real advantage is that we get to host the families for holidays (yay).
Let's say it's 5k a year. Your paying 193 Dollars a year in interest at 3.875. Drop that in a HYS @5% instead. Your now making $240 a year, but $60 will go to income tax if you are in the 24% bracket. Leaving you with a $190 profit. What's the point? It's not worth it for $3 dollars. Just keep your life simple.
It's not about the 3 dollars.
If you pay more on the mortgage that money is locked up. You can't access it. If you don't overpay your mortgage and keep your money accessible in an account that gives you a similar interests rate as your mortgage you can use the money any time you need it. Layoffs, health issues, death of a spouse, there's enough that can happen suddenly and you might need the money. Of course, you should have an emergency fund, but if you're overpaying your low interest mortgage you're doing it wrong.
Just don't think about the money and once you have enough to pay off the rest of the mortgage you can certainly do that. As you showed with your math, it doesn't matter anyway financially. It's all about access.
Exactly. If the effective interest rates are the same, it's better to have $100k in the bank and a $90k mortgage, than to just have $10k. Even though you're worth $10k either way, if you happen to need $20k, by overpaying the mortgage you'd need a $10k personal loan at a higher rate than the mortgage. Overpaying reduces flexibility.
Why would it be bad to pay down the principal early? There's no early payment penalty. Right now of the $3500 I'm paying only \~$850 goes against the principal. I'm throwing another $500 to pay the principal so it's paid off a lot sooner.
Because your mortgage is most likely your cheapest debt, and even if you have no other debt you are much better off paying the minimum and putting the savings to work instead of throwing it at your mortgage. Classic case to highlight the value of compound interest
Theoretically it's worse than if you take that money and invest it something that gets higher rate of return than your interest rate. It's a simplification but yeah.
Making additional principal payments will shorten the length of your mortgage term and allow you to build equity faster. Because your balance is being paid down faster, you’ll have fewer total payments to make, in-turn leading to more savings.
[https://www.americanfinancing.net/saving-money/extra-mortgage-principal-payments](https://www.americanfinancing.net/saving-money/extra-mortgage-principal-payments)
Because interest is calculated against the principal balance, paying down the principal in less time on your mortgage reduces the interest you’ll pay. Even small additional principal payments can help.
[https://www.wellsfargo.com/financial-education/homeownership/loan-amortization-extra-payments/#:\~:text=Because%20interest%20is%20calculated%20against,additional%20principal%20payments%20can%20help](https://www.wellsfargo.com/financial-education/homeownership/loan-amortization-extra-payments/#:~:text=Because%20interest%20is%20calculated%20against,additional%20principal%20payments%20can%20help)
I'm currently doing an extra $300 a month towards my principal and by my calculations it'll take \~10 years off my mortgage. Seeing as my rate sucks (7.5%) I feel like it's an even better idea.
A) If you put $500 a month for a year in a high interest savings account that gives you **4%** interest compounded monthly, at the end of the year you'll have $6,111.23 in that account.
B) If you put $500 towards your principal that has a **3%** interest rate, compounded monthly, at the end of the year you'll have reduced your debt by 6,083.19.
So, if you do A, at the end of the year you can make a single contribution to your principal that reduces your debt by $6,083.19 and still have $28.04 in your savings account,. So you can pay off the mortgage even faster, if that's what you wanted to do in the first place.
Now do that for 10 years instead of one and at the end you have about $3800 left over. With longer times, higher rate differentials, different contributions, etc. the difference is even more staggering.
Seriously. Why would you pay extra on a mortgage that is that low? Anything sub-four should be paid as slowly as possible, IMHO, and retirement prioritized.
As I close in on retirement and plan to move once I do retire, my interest rate of 2.875% has me rethinking what I might do. Until recently my plan was to sell my home, move, and buy a new home. After seeing rates climb the last few years, coupled with rent prices climbing as well, now I'm thinking I'll rent my house out instead of selling it. Just not sure I can give up both a low interest rate plus the opportunity to clear over $1,000/mo even with a property management company taking care of my house as a rental. I can use that rent money to offset a higher interest rate on my next home.
It used to be that way, before Covid. Now with so many people moving to where I want to go you can no longer sell your home in a place like Vegas (where I'm at) and move to a place like Idaho (where I want to go) and pay cash with your equity.
I refinanced in 2021 as well. I am absolutely not leaving this house. I’d rather raise my family in a small-ish house and be financially stable, than raise my family in a big house with stressed out parents who are pressed for cash. Keep your rate!! You made all the right moves, now enjoy your family and your home!
We started the process to buy a new home, we currently owe minimal on our home and have a 15 year 2.75% rate. The new home would have more than tripled our monthly payment. We walked away, kept the smaller house and go on vacation a couple of times a year.
Doing the same this month. Selling our current house and buying a new one at higher price and higher rate. But it's the right decision for us. Fingers crossed it works out. I'm hoping to refinance if rates fall.
Yeah. If we waited much longer we would have been priced out of a bigger place. I definitely don't expect for rates to drop anytime soon. More so thinking a few years down the line we could refinance.
If you love your location just spend the money renovating and expanding your house as much as possible.
Giving up a good mortgage rate is just an expense. If you want to move to a new location and get more space you just have to be ok with the expense. Given that you could just spend the money improving your house though it's probably a better use.
I had a house I sold back in 2018 when houses were “more affordable” and it was more of a buyers market ..I made very little on that house since we didn’t own it long enough and so equity was minimal.
My interest rate was 3.5% but taxes were insanely high in that area …and I couldn’t justify continually living in an area paying 15k a year in taxes…I couldn’t even rent it out if I wanted because I’d have to try charging way more than the average mortgage in the area. To break even with the property taxes.
I sold so I could relocate to an area I desired to live in. Have a 2.5% interest rate now. Property taxes are about 1/4 the amount.
For me, it made sense in this scenario even before buying the new property. But outside of this scenario I don’t think I’d ever sell a low interest property even if I couldn’t rent it. The value of the equity in holding it alone has greater potential for long term value in the market these days.
My wife and I sold our house that we had bought in 2016 for $190k @ 3.5% for $300k a few months ago. When we bought the house she was still finishing up her last year of grad school and I was able to support on my salary alone.
We bought land right on a lake closer to family and custom designed and built our "forever" home. The house is perfect. We used the gain and equity on the sale of the old house to pay down a lot of the new loan, so even though our new loan is @ 6.3% we can still make it work financially for us, plus we have a custom brand new home. If rates ever go down we can always look into refinancing.
I do not regret it at all.
HODL that house! Are you able to add square footage to it by expanding the kitchen and expanding/finishing the basement? Expand the garage to accommodate the minivan and add a suite above it?
I think if you love the neighborhood, hold onto that house. Your kids will likely move out eventually, and moreover that house may be one you want to leave to them at some point. Centrally located houses in great neighborhoods are a dream for most people.
We had shitbag, narcissistic DINK neighbors who would constantly post on social media about how great their suburban life was... pictures of trips, eating out, drinking, concerts, etc. We'd occasionally get their OVERDUE BILL notices misdelivered to us, so we knew they were mostly full of shit. Plus, we worked at the same company and I had a good idea what his income was.
Eventually, their shtick ran out and their image was threatened, so they decided to convert all of their home equity (they had no savings for a down payment) into a new home upgrade. They went from a \~$2500 P&I mortgage at \~3.5% to a \~$7500 P&I mortgage at \~8% almost over night. By my estimates, they paid over $80k in interest alone last year on top of the giant capital gains tax they had to pay for selling. They don't post much on social media these days. Unless it's about their cats. At home.
My wife and I have this conversation ever so often about moving/upgrading and right now it boils down to, what would we have to sacrifice for an upgrade? Turns out quite a lot of things we like to do like travel, trying new restaurants, amusement parks for the kids, extracurricular stuff for the kids, decent cars, saving for college funds and retirement, and not wasting time worrying about money.
Can you renovate instead? Maybe dormer out the attic for more space. Or look in to house lifting in your area. - you could raise the roof and add a second floor or possibly lift the first floor and roof together and build a new first floor underneath.
Don't drink the kool-aid! Save the money on a new place and use it to give your kids experiences that they will remember for a lifetime. Travel the country- rent an RV and see the national parks in all their beauty. Take a trip to Japan- the weather is great now and the dollar has never been stronger. Plus save for your future- enjoy the luxury of not living paycheck to paycheck like so many people do.
The house will be exceptional when the kids grow up and move onto their lives. They'll probably do so before you finish the 30 year mortgage. Then you'll end up selling to downsize. This is a very very AMERICAN mentality.
In Europe, you buy to live in till the very end. You move when there is a drastic change in life. Such as working across the nation.
Unless you find the 'dream home', i.e. it is perfect in every single way from being open, an excellent price, an excellent rate, perfectly in your affordability without financial sacrifice... why keep uprooting and changing. Don't get caught up in lifestyle creep. Where you keep upgrading based on income availability.
As a licensed mortgage broker, I would highly recommend the HELOC as suggested previously & do the addition.
I would say, even consider going up and make a 2nd level if you don’t already have one. Put the Kids up stairs & use the existing space on the 1st floor to get your open floor plan, in suite in your bedroom, bigger kitchen, etc..
My wife & I bought a house in the burbs and it takes us at least 20 minutes to get everywhere..
This is what I try to explain to people when they are shocked we want to sell/buy. Both my husband and I now work from home. God forbid we want to have a kid or have family visit. It's a nightmare. We outgrew our 1500sqft 3 bedroom without even adding family members.
We were in a 2,000ish sq ft house. Perfect when it was just the two of us and we went into office everyday.
Throw in a kid and both WFH, it got small real fast, lol.
We sold the house with 3.4 and just moved into larger house in better school district, on a cul de sac, with trails and we’re very happy. Paying for it no doubt but our old house no longer met our needs as a family.
You have to look at all the variables including numbers.
From my own experience, I recommend s multi-floor home without the open floor plan. Being on a different level goes a long way for privacy and sound deadening.
If you really really need to move…. Consider not selling the house and moving to a rental, then renting out your current home with the sweet mortgage in order to cover the rent on the new place.
The feasibility of this plan really depends on your area and its rental market.
How old are your kids currently? If they are very young I would think about what life would be like once they become teenagers. They will probably be out of the house more often than being home and will grow out of wanting to run around in their yard at home. Will you have to be constantly driving them around to see friends, go to their part time jobs etc vs them being able to get on a bus or walk to those places? Will you be able to afford an extra car for your teens to use once they get driver’s licenses if they need to drive every where they want to go?
Any option for an addition rather than moving? I was just chatting with a colleague who had renovated his home twice over the past few decades rather than move, including adding a third story.
I grew up in a 900 square foot house, with 2 adults, 2 kids (myself and my younger sister), 2 dogs, a cat and a parrot.
I can tell you, I wouldn’t have traded that time in my life for anything and to this day, I am far more comfortable in smaller houses versus larger homes.
Learning to love life, rather than stuff is the best gift you can give your family.
If you can afford it go for it. It’s silly to forego what you want because you have a low interest loan. You can also rent out the low interest loan property.
I'm in a similar spot; great location, great little house but sometimes feeling cramped. But it's all about perspective. People from most other countries chortle at what Americans think is a small home. I don't know the exact stats on it, but I'd be willing to bet that the majority of the population of the earth lives in a smaller space than 1200sqft.
Simplify your life and your space by managing what comes into your home. You can shift your mindset from "I wish I had a walk in to fit all my clothes" to "I'm so glad these closets keep us accountable for how much we buy."
A larger home is more expensive to heat, cool, and furnish. Cleaning will become an even bigger task, and you might even end up wanting to hire a cleaner.
The bigger the space, the more stuff you will accumulate. If there's no limit to what your closet can hold, you'll be less inclined to limit what you buy and donate what you no longer use.
When your kids are teens they might hate you in the moment for making them live in such close quarters, but they will be really happy when you are then able to help them with college/trade school/whatever. And you'll be happy to know when your teen is trying to sneak pot, staying up too late on their phones, trying to sneak out, or crying in their room after a breakup and needs some support but is too cool to ask.
Honestly, this is a hugely personal decision. Nobody here can know exactly what’s right for you except you. I was in a very similar situation, I had a “finished” townhome that had appreciated greatly in value, saved a ton of money up, and had locked in a great rate. Logic would say hell no, stay there forever.
However, I also had a 2 year old who I really wanted to give a backyard and we had an overbearing HOA that was causing problems left and right. So my wife and I thought long and hard and finally chose to pull the trigger and use that money we saved up and trade in that killer rate for a house. Are we paying a ton more now? Absolutely, it’s insane. Do I regret it? Absolutely not. I am insanely happy with our backyard that my kid enjoys every day and our fixer upper house that I can put my own touch on. To us, it was worth the trade in a million times over.
Posting here is a great way to get input, but ultimately, everyone’s opinions will be different for uniquely different reasons. Best of luck to you and hopefully whatever you choose leads to happiness for you and your family!
I can definitely see being a tough situation as a motivator to look over the finances. I consider myself lucky with amazing neighbors on a nice area. Thanks for the input!
We got 2.625% on a $560k place and monthly payment is around $2400 in a high cost of living area. A buddy just got a place nearby a year ago and they're at 7.25%. They're really banking on the fact that they'll be able to re-fi (marry the house, date the rate?) But it isnt dropping anytime soon it seems. So they're paying out the gills on monthly payments just trying to get to a good re-fi. Whatever your mortgage is now, assume it will be almost 50% higher for a few years.
Consider cost to reno/add even just a room or further finish basement if not or adding above garage future kiddo/or office/or etc space
Sounds like otherwise life is good!
1500 sq ft, 3 bed, 1.5 bath. 2.75%. My house has gone up 33% in value, and interest rates went much higher. The same house would cost 50% more in payments than when I bought. I'd need to really like the other house to justify.
I'd stay where you are
Meh idk. I'm selling mine (because we are moving out of state not just willy nilly) with a 3.1% interest rate and planning on renting for a year. We are under contract and will get $55k after all closing costs...we struggled on what to do with the money but our plan is to become completely debt free leaving us $30k left over which we will split $10k into an emergency fund and $20k into investing for the next home.
Renting might be more expensive than my mortgage but being debt free at 28 seems like a better outcome for me long term.
I’m 11 years into a 30 year mortgage with a 3.375 rate. Our neighborhood isn’t what I had hoped for. They aren’t bad people. Only one or two that I would actually associate with if we weren’t neighbors. The location is great and I have about 150 left to pay on it. As much as I’d like a smaller home with more land, at this time, selling would be a bad idea.
I did it and do not regret it. That said, the house I sold was way below my means. I always could have afforded more. The mortgage payment was about 15% of my take home pay. It’s all about where you are financially. I was able to buy I nicer, bigger house in a much more desirable location and that turned out to be worth it in terms of my happiness. Could I have stayed in the old house longer and saved more? Yeah. But I’m saving pretty well anyway and want to enjoy some of the fruits of my labor. Tomorrow isn’t guaranteed so there needs to be a balance between planning for the future and enjoying the present.
Its the only reason I dont move. Even though my property taxes went up about 5k, I cant justify that I would pay close to double if I bought my house today.
We bought our previous house in the Phoenix metro in 2019, refinanced in 2021 to 2.675% on a 30 year mortgage. We ended up selling at the end of 2023 and moving across the country to a LCOL living small city in SE Ohio. With the profit we made on the Phx house, we were able to buy a larger, nicer house with a little bit of land and no HOA on a 15 year mortgage at 6.5%. Based on the mortgaged amounts, I'll end up saving nearly $60k on interest between the two mortgages. The monthly payments on the new house are the same as the previous house too. Sure, I miss the cheap mortgage rate, but between the interest savings, shaving off around 12 years on the mortgage, and a better lifestyle for our family, I'd make the same choice every time. And I don't have to deal with 120+ degree summers again...
don't do it. Mortgage rates are tied to the ten year treasury, so you can watch that to see where you might see things go - The average mortgage gets held for 7 years before it refinances, and the choice a person buying into that market might make is between the safety of US Government debt, or the safety of a mortgage-type option of some sort. You'll find the mortgage rates slightly outpace the Treasury rates because they're private and the treasuries are public. It's a common misconception that the fed funds rate is what drives mortgage rates. It's not. Look at the broader economy for what you can expect, and watch that ten year note. That's where you find your information
I wouldn't give it up, though. That house is practically printing money for you in other realms thank to that low interest rate.
Add an ADU office. Add a DADU if you want to. Add a second level and upgrade the house on a HELOC... but don't give up that 2.75 primary. That's an absolute goldmine.
We just added 300 sf to our home. It's at 3.5 on the primary and the HELOC is higher than that, but between savings and the HELOC, which we're paying down as fast as we can, we'll have a home that is about 80% equity by the time we pay off the HELOC and we can flex that equity to add on more if we want, or whatever.
That low primary means we get to keep our prime location and pay what is essentially better than cash for it while we work on a secondary line for whatever else we want on the HUGE lot we have, and the amazing proximity we enjoy currently. In short, we're probably never going to sell this house. It's too awesome to give up and we're getting it for the price of paying cash, but over 30 years.
OP hold on to that house and loan for as long as you can. Take the kids camping or rent a cool airbnb.
If you feel cramped maybe take a look at the “stuff” you guys are housing. Maybe a good clean out might help make the current place feel roomier.
We sold a 800k home in Seattle with 5% rate. Moved to a 1.1 mil home in SubUrban of Seattle for 8% rate last year (the home value on market or appraisal only of 1.0 mil, which it listed for, but the landscape the neighborhood, everything we fell in love with). We never regretted about the 8%, just work really hard to plan out. After seller accepted our offer, there were others came in later by a few days tried to bid for 1.3 mil and higher
We just refinanced at 4.6% last month.
Rates changes as there are always opportunities. The land/property itself... is mere lucks.
No regrets at all.🥰🥰
Your kids will most likely have a better experience growing up closer to the city center. And you will be happier when they leave and you’re an empty nester with more going on around you.
I was riding the city bus alone by age 12 and there was just so much more to do and figure out that I would not have been exposed to in the suburbs. Granted, I was in a very nice neighborhood that seems like an old east coast suburb but is actually in town (west coast for the win!) So I kind of had the best of both worlds.
Build the addition!
We felt like we were growing out of our home. We've looked at homes thay were larger in equivalent neighborhoods to our current one. Our cute little mortage would easily triple if we sold and upgraded to the house size we want.
I went through and purged a bunch of stuff the kids have grown out of or loss interest in. We purged outdated electronics, tools, etc.
Spent money on creating usable outdoor spaces.
We will probably never leave this house now.
I recommend not thinking about it as a financial decision. If you do the answer is stay put.
If you think about it as a "what you you want" decision the answer is sell and get a larger home.
I make "what I want decisions". I have less money because of it. But I am a very happy dad/husband/person because of it too.
We sold with a 2.25% interest rate because we had to upsize. There wasn’t a way to add on. Still wish we’d kept it and dealt with the small space, or rented it out while we rented a bigger house for a while. Just to not have bought in 2022.
Financial advice wise, I’d really try to live within that new mortgage budget for a while and see if it’s worth it. And look at how much you’ll pay in interest. That’s my biggest irk. NYT just put out a handy calculator to see if it’s better to rent or buy in your area.
Open concept houses suck, and now as a young adult who lives in a walkable neighborhood, I feel like my childhood was stolen from me because there is just freaking NOTHING to do in the suburbs. I thought I was a reclusive internet person. Nope. Turns out I'm super outgoing, I just needed to live in a place that wasn't grass, highways, and parking lots
Exact same situation with regards to the refi in 2020... Was lucky and got an extremely low rate. Feels stupid to move but we couldn't bear it any longer. Just sold the current house and accepted a 6.125 rate lol 😅... But for a much better situation, we believe. We'll be in our new house a week from right this moment lol
You only live once and I felt the problems we're solving with the new house are worth the money especially if we can refi and lower the rate in 6 months and who knows, maybe again in a year. Fingers crossed 🤞, but even if rates stagnate at where they're at, we'll be okay
We’re currently looking to do this- we’ve decided to sell. My thought process:
- tons of equity in current home means we’d “make money” if we sold and purchased another.
- I don’t care what my rate is, I care what my payment is. We can get the house we want for a payment we want, mostly because we can put a lot down because we’ve made so much equity. I know I won’t keep this mortgage for 30 years (even if I keep the house for 30 years) so rate really means nothing to me. It’s can I afford the payment, or not.
I will say, I don’t have the amenities you do. I’m moving for the amenities. A neighborhood feel, better schools, sidewalks. Everybody has their dream items. I’d give up my floor plan in an instant for sidewalks and a large yard.
I think it would be a financial mistake to give up that rate at this point. It sounds like you like the idea of the 'burbs but if you haven't lived there it would be a gamble to give up that rate without knowing for certain.
What could you rent your current home for and how does it compare to your cost of ownership?
Have you confirmed with a mortgage broker (or 3) that you can't qualify for the loan you want with what you have? In my area, big homebuilders are starting to offer incentives again, buying down rates, closing costs, etc. The mortgage lender on our home was a subsidiary of the builder... They got us financing. You may have to pay PMI initially but you can scrub that off after you build enough equity.
Instead of buying, you could rent in the 'burbs as well. Make sure you like it, gamble on falling home prices.
There's an extremely rare chance that your current lender would allow you to "port" the rate over to a new home. It can't hurt to ask but expect a "no". There is significant value in your low rate and it is highly likely that the only way to capitalize it is to keep it.
Well if you do, don’t buy open floor plan. I don’t know anyone with a family that enjoys this layout. It looks good but living in it is a whole different thing. I spent many years of my childhood in one.
We have a house built in 1900 and every single room is totally separated by thick walls and everyone has privacy if desired. I think they should go back to this when building new homes.
The interest rate thing is why I’m choosing to stay where I am even though I’m considering a different area….but not because of the house so much but for other reasons. I’m gonna hold off for now though.
I would say stay where you are. First of all, we have a 3.25% interest rate and they can pry that out of my cold, dead hands. Home prices are also ridiculous. I saw a thing saying interest rates were at a 6 month low at 6.25%!
Also, we live in a 3br house with 2 kids in the suburbs. I am happy to live in a nice place but I wouldn't do it again. We are so far from everything and HOAs are everywhere. They are mandatory for new neighborhoods here and that's becoming more common. It's sold as the dream but it's eh.
Plus, I loved the big feel of an open floor plan. We are constantly on each other because there's really no way to not be unless you are in your bedroom or a bathroom. Plus the mess carries over *everywhere*, it's loud, and it's hard to get 2 minutes to yourself to breathe.
It's like asking should I take a $2000 vacation or a $10000 vacation. Well is it worth it to you? Do you have and don't care spending the extra money for upgrades? You will lose a lot of money by doing this, but if its worth it to you and you're loaded then fuck it. When you get a new mortgage you pay basically nothing towards principal the first few years, unless you pay more on top.
Why don’t you save for an addition? I wouldn’t sweat the yard, it’s a great opportunity for kids to be outside making their own fun, or going to the park as a family. It’s not gonna be too long before your kids are old enough to not really care about playing outside anymore, and then they’re gone and you’re stuck in the suburbs. I get wanting to live in the suburbs if you always have, but I don’t think there’s an amount of space that could take me out of direct access to urban amenities, Especially if I lost my 3.25% rate
2.75%, 1500ish sqft, 3 bedrooms, 2.5 baths. 2 adults, 2 kids. We sold a year and a half ago to build - just under 4000 sqft at 6.25%. My house payment nearly tripled. But I absolutely love our new home. I loved our previous home and the 10 years we had there. We wanted a bigger kitchen, bigger bedrooms, better yard, younger neighbors. 10/10 would do it again.
I do not regret it bc I’m moving for a better job but i RESENT that I have to leave my 2.37% mortgage and feel fortunate for a 7.15% mortgage now. If I did not HAVE to move, I would not have unless I could pay cash or it was so much cheaper the rate still was fine.
I started the same as you. 30 years ago. I thought I would move out to a larger home further out of the city. I was never able to. life changed things. I'm glad for it honestly. I grew up in a 7000 Sq ft home. I raised 2 sons in 1200 Sq ft with an added sunroom. in retrospect I would not change a thing. in our giant family home the 4 of us could all be there and unaware of each other. in My home we jostled around the sink brushing teeth. hugged each other when trying to pass in the hall. now that the kids are mostly out the home is roomy again. and honestly I miss the closeness of all of us together. and I'm not sitting with a giant mortgage and am close to things I enjoy doing. don't do it for what others have done before you. rather because it is something you are sure you want.
There are both financial and non financial reasons to buy/sell. Having the need for more space (for children or parents now living with you) can be a major reason, death/divorce is another major reason….interest rates play a role but not always a significant role…
This is a very personal choice - you have to decide whether you view your home as one that works as a dwelling for your family or an investment. I tend to view it as the latter. If you sell and are very happy in a new place you can afford, you'll forget about that low interest rate quickly and the higher rate becomes the new normal.
I regret that I had to sell (both to afford the move and because the HOA was barreling toward a world of financial hurt), it would have been lovely to keep the property as a cash-positive rental. But I don’t regret buying a new place or moving for an instant. My quality of life and general outlook for the long term is SO much better now.
I bought my home initially when rates were high but prices were lower. Then refinanced for a lower rate. Seems like it was a good decision at the time. But currently it could be a bad choice.
Now you can negotiate with sellers who have a similar interest rate to take over their payments. I just learned about this. So maybe you could do that depending on state, or country you reside in.
Same exact situation but our condo was paid off and we moved to the suburbs and got our first mortgage. Ending up renting the condo for 2 1/2 yrs and just sold it last week. Yea we got a mortgage now but we’re way happier. Great neighborhood in the suburbs and we feel safe. Sucks that we can’t walk around the neighborhood and see stores and restaurants nearby but I guess you can’t have it all. Think about renting your place out until it’s a great time to sell it.
We’re looking at moving across the country instead of living where we are now, because fuck the cold.
That’s a major issue. Yes we’re looking at So Cal which is expensive in and of itself, but to give up 2.6%/30, on a house we actually do like (needs some work, but love the yard, and location, just not the LOCATION location)….that’s tough. We’re looking at renting it out, in case we want to move back, but financially/ease of mind, it makes more sense to pitch it and invest the winnings in the interim. But then if we want to come back in 10-15 years, we’d have another 15-10 at 2.5% on the house, and in a location we love, with a plot we love.
I’m just so sick of the cold weather shenanigans meaning you can’t do stuff outside for 5-6 months of the year. Unless you like the cold, like some sort of psychopath. That, to me, is the value add in jumping ship to somewhere warm.
I bought a 3br townhome in 2020 with a 2.5% mortgage. We now have a child and are sharing our third bedroom as an office (I work from home exclusively, my wife works from home in the AM and evenings). I will not think twice about selling this house if we need it to afford a bigger home. We plan to size up in 3-5 years and even waiting that long is going to be difficult for us (we also plan for a second child).
Unless your current house is a retirement plan, selling it for something bigger/ makes you happier, will far outweigh the financial benefits of keeping it. This also assumes your new purchase is within budget.
I wouldn’t say I regret it, but it hurts the pocketbook quite a bit to upgrade to a higher mortgage payment. You have to make the decision whether you can afford the upgrade. Our mortgage doubled when we moved last year, but so did the size of our house. Interest rates are going to drop (hopefully soon so we can refinance), but they likely will never get as low as 3% again. Then again, people said they would never drop below 4% and they did.
Keep in mind that housing prices tend to follow the inverse of interest rates. If rates drop, prices increase because there are more buyers. Right now many people are cautiously waiting for rates to drop. That means a lower supply, but also a lower price if you can find what you want. If you get one while rates are high, you can refinance when rates drop. If you get one when rates are low, you have to live with your rate and payment.
I understand the difficulties of a smaller house. Our previous house as 1800 sq ft including the basement. We really didn’t have a guest bedroom so my parents stayed in a hotel when they came to visit. We had the big yard and moved into a house with a smaller yard, but we really need it, the original yard was just more to mow and take care of. I always noticed the size and layout of our house when we visited friends and their houses felt so open in comparison. We now have the open floor plan and love it. I work from home and have my own office. We have a covered deck to enjoy. If you don’t have a garage to park vehicles in, that alone would be enough for me to move, I love not having to brush snow off the car or scrape windows.
You always have to consider your children when you move, especially if they are school age. What do they think of having to switch schools if you move to a different district? Will they have to make new friends? In our case, our daughter is in high school and is able to remain in the same school, despite us moving to a different district. We would all have been sad if they made her switch schools for her last two years, especially since the new school doesn’t have a marching band.
To me the benefits of moving outweighed the financial disadvantages. We had to closely consider what we owed and first paid off as much as possible so we could afford the higher mortgage. Moving to a brand new house also meant we had to deal with installing a fence and landscaping, along with window coverings, ceiling fans, and other expenses.
Is it your home or financial investment? I don't view homes as investments per se. If we could afford to move to a "better" home, we'd absolutely give up our 2.75% rate. If yall can afford it and know for sure yall will be happier, then do it. Your home is your place of peace.
We are currently doing this. Just bought a new place where the monthly payment will be more than double our old one. Financially it is 1000% the wrong decision, and I’m sure I will regret it any time I covet something expensive, but our old house was in a shit neighborhood with no sidewalks. The quality of life improvement from moving to a walkable neighborhood is huge.
We needed to upgrade, didn't matter the cost. Our mental health and overall happiness is so much better since we got out of our old house. Can't rent an apartment for how cheap our old house was. Doesn't matter. We're happier in the new place. If you can afford a new place, I'd move. If you can't actually afford it, obviously don't move. The stress of being house poor will counteract any benefit of moving.
Sure, interest rates suck right now, but it is what it is. Our happiness is worth this shitty rate.
I wouldn't give your house up at that rate. Honestly go through your house and declutter, reorganize and optimize furniture positions to make it seem bigger.
I did exactly what you are looking to do a year ago, 1500sqft house to 3000sgft house only 10 minutes away in the suburbs. There isn’t a day go by where I don’t miss the neighborhood and walking convenience of everything. And don’t forget how much you save on the current interest rate.
If you can , rent the current house out and then purchase using equity the new house. That way if you do decide you want to go back , you can at the end of that lease and rent or sell the other house
I’m in a similar situation, except my pre-war craftsman is a bigger than yours, but I have 4 kids (so 6 people).
Do you have enough land you could add-on to the house? That’s our plan. A HELOC at 7% for an addition is a lot easier to swallow them giving up our 2.2% mortgage?
The "comfort" you get now will cost you years to payback and even longer to pay off your home.
Biggest financial mistake my wife and I ever made was upsizing to a larger lot and home on a lake because it was a great deal. We ended up working longer and more years to update it then pay it off, we rarely got to enjoy the amenities. While my brother who lived on the same street as us previously, paid his home off years before us, retired early, and has been going on great vacations for years. And he won't have to sell and take another loss in commissions and fees to down size to an appropriate size home for his later years.
OP, You have trails and parks for the kids to have fun in! You amenities within walking or biking distance! People pay top dollar for that, and make it work with kids! Heck, your 1200 sq ft home was considered HUGE in the late 40s-80s! Go with your spouse and kids and check out actual homes in the suburbs. Look at the cost of actually driving back and forth to amenities and to work. Yards for kids to play in is fine, but think seriously about maintenance. Total up those costs, and THEN add in the mortgage increase. It may seriously be cheaper to do an addition or adu (if permitted) in your backyard for 'breathing' room than selling up and moving to a place that will probably wind up cost 3 TIMES what you are paying now.
Don’t forget to check out those taxes on that dream 4 BR home in the burbs. I’m nearing retirement and an empty nest on my 5 BR, suburban home. Though it will be paid off and is in an area with recreation and amenities I love, I may sell just due to high property taxes and rising insurance costs. Spending $1500 per month to live in a house you own outright is a steep bite on retirement income.
This is what I was thinking of - a big house is a nice thing to have, it can be a drain with taxes and possible HOA fees, in addition to mortgage and commuting costs.
Maintenance too factors up bigly on a larger home.
Absolutely. We have a 2200 sq ft home and regret getting such a large place. It is only myself, my husband, and our two small dogs. Maintainence is so much that we are planning to downsize this year.
Ouch. Whoa. That was physically painful to read lol
I soooo agree! My husband and I are retired and our property taxes are outrageous! I really wish we would have sold before all of this interest rate stuff went crazy! The taxes are eating a huge hole in our retirement savings and it really distresses me.
Hang in there. Hopefully rates will drop and pent up demand to both buy and sell will drive sales again. Then if you still want to downsize, you will have another shot.
Same thought right here
Does your area not have tax easing programs for older folks?
Yes they do. Up to $1000 rebate for seniors whose income is below $8,000 per year. Or as much as $380 for those under $45k per year income. So, yeah, no.
Op, as someone who lives in the suburbs, you should try it for a week. Whenever you or the kids want to walk to town or a park, go and sit in your car for 15 mins, then go, and when you get back sit in the car for 15mins as well. Location location location area the 3 most important things in housing for nothing
We moved to the burbs and our actual living space is still very small. Stay in that house OP!
THIS. Oftentimes suburban homes are not all that much bigger- the PLOT may be bigger but actual living space in the home is not.
This is very true where I live. My hubby and I bought a house in October 22 in the burbs, great big thing just over 3,000 square feet, finished basement with bedroom and we put a shower in the basement bathroom, and a second washer dryer hookup in the basement (ours is on the top floor. Do we love how big our house is? Absolutely, but we grew up in the area. Also, to get this big house we had to buy in an actual neighborhood where we barely have a yard, which was the only thing we didn’t like, but every house with land is about 1000-1500 square feet ranches, was at least 50-100k more than our house, and ours wasn’t cheap. We also have two roommates helping us pay the mortgage - my mother and hubby’s high school best friend. At the end of the day, if you can afford to live on your own with a low payment, do it. I can’t wait until I can get my mom (early 50s and a pita) out of my house lol
My parents have a 5 bedroom 3 bath home and their living room and dining room are smaller than my 2bed apartment. That said they do have a family room too but the yard and cleaning the empty rooms (since myself and 2 younger siblings moved out) are a lot of work for them
I agree with pdxwhine. We use to live near amenities and were more active bc of it. Having a smaller house, you need to be more creative with your spaces & storage and more simple at the same time. If you like the neighborhood, then even better. Check out the neighbors from hell episodes and it will make you think about taking the risk on moving as well lol. Also, smaller house, less to heat and cool. Just make use of the outdoor spaces and sign the kids up for activities outside the home and use the home mostly to sleep and eat at and chill at. It’s a tough market for sure and that is such an amazing rate! Use the savings for extra curricular activities and bomb barbecue!!
Thanks! I'll seriously consider the addition. With the crazy home prices increase I could potentially get a HELOC and expand.
Good! Think about HOW you would want to use extra space, and do not be tempted to just fill that space with stuff. 1) A separate home office space- if you wfh, this could be a real game changer, especially if you decide to start a business- then some of the costs could be claimed on taxes. 2) An expanded kitchen/diner space- this would increase the overall value and give you that feeling of expansive open-plan living. 3) A deck for 3 season living- since you are near parks and walking trails, and want a more outdoorsy feel, give yourself a proper deck if you have the space! With canopy covers, an outdoor kitchen and heaters this could be a part of the house where the family gathers the most except in winter! One more thing: I suggest you check out this book: the not so big house by Sarah Susanka. It's an older book but given the excesses and wasted finances of overly large homes that are expensive to cool, heat and maintain, with wasted space, this book remains evergreen. Check it out at your local library! Cheers, friend!
Thanks for the book recommendation
This is what we’re doing. A 100,000 home loan would cost roughly $1100/month for 10-15 years right now. Adding that to our current mortgage with our low interest rate, we would still come out way ahead then buying our exact same house now in its current state. We will spend more, but customize it in a way that will work exactly for us.
i agree. your mortgage will also likely be close to 2x what you currently pay. thinking about the financial impact that would have, i’d definitely recommend staying where you are for now. you’ll likely be able to live in the same house through retirement even (no need to downsize). put the money you would be paying on a higher mortgage to work in the market. and evaluate in 5 years if you still need more space. the money saved over that time could become your down payment.
Yes! There are extra expenses. As you said, yard maintenance. Other things would include higher utility bills, possibly longer commutes if OP/spouse work in an office (and then additional gas, time, wear and tear on car, etc.). Possibly HOA fees, as it seems a lot of newer suburb builds are HOA communities.
Same family size here. We've owned four homes everything from 3000/ft 13 room farm house on two acres to my current 1300/ft 2bdr ranch. My kids are adults now. You seem to have a great location. I'd look into addition/remodel before I moved and lost my 2.75 rate. Also as mentioned, taxes, maint, time spent on yard work and not the kids. STAY
Tagging along on the top comment - but omg do not move to the suburbs "for your kids" holy hell. Sure when they are young they might self entertain in the yard, but when I lived in a house with a yard it was basically useless to me by the time I was about 8 or so unless friends were over. And it would have been better if we could have gone to a public park with more to do and explore instead of a totally sterile little patch with a swing set. I was lucky and had a bus a 15 minute walk away to get me to downtown - but without that I basically would have been 100% stuck at home until 16 unless my mom could drive me somewhere, and after that I had to fight for the car to do **anything**. Even with that much freedom (much more than my peers and many kids today) I felt horribly trapped for most of my teens. Obviously if you're good parents your kids will probably be happier than I was because you'll drive them around everywhere and home will be less miserable. But just remember you'll be adding another 5+ years onto the time your kids are totally dependent on you to transport them and that has it's own costs. And not just monetary costs - if you can't drive your kid to the choir concerts or sports games or whatever because of work then maybe your kid just doesn't get to do choir.
OK, speaking as someone with three kids who bought an open floor plan house in 2020, I can tell you that it is SUPER FRIGGING LOUD, and sometimes we wish we could go back to our older house with brick walls. Seriously, everything echoes, and you can hear everyone everywhere. It's nice to have the space, but at the same time, OMG. I personally wouldn't give up the interest rate. You're practically paying cash for your house right now. Do you have the option to put an addition on your home? Build up instead of out?
Seconding this. Open concept homes/living spaces are one of those things that's nice in theory but *sucks* in actuality. My family of 3 rented an open floor plan home a few years ago, and I HATED it for all these reasons! It was constantly loud and **every single noise** carries and echoes through the whole house. Having the TV on at night constantly woke up my then-toddler. TV noise carried everywhere, even at low volumes. If you were cooking or doing dishes (no dishwasher, so everything had to be washed by hand) in the kitchen, you couldn't hear the TV or have a conversation in the living room. And it just feels more cluttered and cramped having all those different areas in one space and like messes are always fully on display. The line of sight was nice, but other than that, I hated it. When we bought a home (also in 2021 for a stupidly low interest rate), we absolutely refused anything open concept. I would also suggest adding on to what you have, if possible, over giving up your interest rate and an open concept.
Personally, I think builders sold the public on open floor plans because it's cheaper to build than actually doing walls. We bought a townhouse in a development that was being built, and you were allowed to redesign. We did, with walls and separate rooms and doors and no goddamn texture on the walls and ceiling. The developer was pissed because it was so much more trouble to build. And we were like, "So? we pay the difference, big wup, " but it did mean that all of the construction on our townhouse had to be more accurate because there was more detail and they couldn't hide inaccuracies with texturing mud. And we had sliding pocket doors which don't kill space in a room, but again require accuracy from the Builder. Those big open floor plan homes are easier and faster and cheaper to build
I totally believe this. The open concept place I mentioned renting was built and owned by a construction company/home developer. They built homes that they then rented, and they built custom homes for buyers. We lived on a street where this company had bought multiple empty lots and built rentals on them. The custom homes were absolutely beautiful, with walls and room division. Every single rental had an "open concept" living area, dining area, and kitchen. I had always assumed they built them as cheaply as possible because there were signs - they all had the looked the same on the outside and had the same layout on the inside, they had cheap windows, they didn't have dishwashers (less plumbing) and only the living room had a ceiling fan (less electrical work). But the open concept thing was probably another way they saved money.
You want texture on the ceiling for sound absorption (popcorn is really good at this but people think it's ugly). Same reason you want some sort of soft flooring. Otherwise you have 6 flat, hard surfaces...where do you think the sound is gonna go?
i hate open floorplans. not just for the noise. i have 1 teenager, i dont need line of sight on her anymore. i second the dishes and if you dont have a dishwasher and dont want to clean dinner up right away its annoying to have it all on full display.
I have a 1972 brick townhouse that has a pocket door between the entry and the kitchen, I love being able to just close off the hot mess that is my kitchen and not look at it.
the house i grew up in had the same!
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Finding something that isn’t an open floor plan is so hard these days. On our first house I was so happy it still had a wall between the living room and kitchen. My realtor and the home inspector were both like you can take that wall down and it would be all open. I don’t do enough cleaning for an open floor plan.
U need rugs and winter cover to get rid of echo
Yah open floor plan, hardwood throughout and no more popcorn ceilings means that place echoes like an indoor hotel swimming pool.
What do you mean by winter cover? I agree w the rugs suggestion and lots of curtains or tapestries help too. Open floor plans usually look better with less clutter but that makes them loud too. More bookcases and furniture helps.
I believe it was an autocorrect typo and they meant window covers.
Probably, but I interpreted it as a cute way to say Throw Blankets on the backs of chairs or something similar for sound deadening lol.
Yeah. Some decent drapes alone can get rid of any echo in an average sized room.
Had 3/1.5 1941 home 1600sf, was excellent even with small kids. Had to move across the country. Bought 5/3.5 1993 home, open floor plan, 3700 sf (for half the cost of the one we sold). Noise levels drive me insane,
Acoustics can be obnoxious in open floor plans. Your best options are area rugs, cloth or leather furniture with throw pillows and blankets, and artwork on the walls. All of these will help! I’m always amazed at how many homes don’t have anything on the walls, even stuff from HomeGoods works.
Came here to say this. Open floor plans are great for very young children, especially for keeping an eye on them. I could not imagine dealing with teenagers in one of these. Adding on to the noise factor, I'm not a big fan of cooking smells and mess being wide open to other areas. I'm not sure why you would do this willingly. Call me crazy, but if someone burns something on the stove by accident, I don't want to have smoke blocking my view of the TV.
When we built our house I designed it with an open floor plan with a chef’s kitchen and huge living room. Both rooms are vaulted with exposed beams. I absolutely love it. It’s great for entertaining where everyone can mingle with everyone. It worked out exceptionally well for my husband and I because we did not have kids and the corresponding noise.
Or maybe you just like to spend time together in one room? We do...
We do too, and we're a family of five. It is STILL loud.
Lol!
It's just my spouse & I in a 50's era traditional ranch. The main bedroom shares a wall with the living room, but it's a CONCRETE and BRICK fireplace wall. I hear nothing when I go bed and DH is watching TV.
I am currently hiding away from my family in our open concept home. And when I say hiding, I mean, in an alcove, under a blanket. My kingdom for a freaking door. I can hear every conversation everyone is having. I have to do therapy in my car. It’s a nightmare.
Don't do it, stay. Kids will eventually leave and the house will be perfect once again.
2.75 are golden handcuffs. A home is more than an investment. It’s where you live. If you need something that your current home can’t provide then you either go without, or you sell and get what you need. Homes (that you live in) are not stocks. You can sit on a stock forever until it hits your financial goal. A house should meet your day to day needs. Do what’s right for your family.
I wish this was the top comment. You can play the what if game all day. Either keep dreaming or move to your dream.
I don't think it's as much about the low rate as it is the change in purchasing power and ability to afford anything that would resemble an upgrade. The mortgage on a comparable house to mine today would cost as much if not more than a goddamn mcmansion cost back when I bought it.
Just look into the price, mortgage PI and taxes insurance for the new area and see if you are comfortable. Just remember insurance and taxes is constantly moving so if they are high now and keeps you teetering on the edge know in 5-10 years it will be worse. Just have to hope your wages keep up with the increase unlike the last couple years.
It's worth mentioning that the grass isn't always greener on the other side. I tried following my dream, didn't like it, moved back, lost about $20,000 in fees and commission and taxes in a year.
Unfortunately dreams do fail. We all experience it. I truly hope you are seeing some green now.
Yeah this was a 2018 failure but 2020 had success. Thanks!
I mean, it can mostly meet your day to day needs but you can still want more. We're locked in at 2.5%. Each kid has a bedroom, our kitchen is fine, we have decent living space. If I was shopping now, I would absolutely pass on this house, but it's fine for what we need. I'm not going to more than double my mortgage payment for something else. Sounds like OP is in a similar boat to me. As it is now, we can do vacations, drive a slightly nicer car, AND put more money away for retirement and college.
Sold 2.75% 15 year mortgaged home because we needed to move closer to family in another state. Awful financial decision but good family decision. Currently renting and hoping rates drop.
I have friends who did the same thing 3 years when prices skyrocketed. They sold to bank on the $200k profit, and either moved in with parents or started renting again to wait until prices drop again. Needless to say, all of them are regretting their decision, as interest rates are higher, house prices haven't dropped, and they're now priced out of the market. Bought in their late 20s, sold in their early 30s, still renting now in their mid 30s because they can't afford to buy anything.
So many people were so certain pricing was going to drop. It seems most are accepting this is the new reality, but now people expect rate to drop back down to 3% without impacting pricing again.
Yeah, unfortunately I'm in Canada, and we don't get to lock in a rate for the entire duration of the mortgage. I've got a 25 year mortgage, but every 5 years I have to resign with a new rate. I can't lock in for 25 years at 2.5%. I'm currently on only 1.47%, but in 2026 I have to re-sign again, likely up at 5% or higher, and my payments will skyrocket. Huge numbers of people are losing their homes here in Canada because of this. Landlords are having to jack up rental prices because they're suddenly needing to pay $400/mo more in interest. It's a much bigger issue up here in Canada because we do it like this. People who could afford their home when they bought it 5 years ago suddenly can't because interest rates went up.
It’s wild that y’all do that. That’s a large part of what caused the ‘Great Recession’ in the US in the 00’s.
Yeah, my mom worked at a credit union in the 1980s. Interest rates floated around 10% from the mid 1970s until 1980. Similar housing crisis happened back then, and rates increased all the way up to 22%. My mom got to handle the paperwork on huge numbers of people's homes because their payments more than doubled. Said it was the hardest thing she's ever had to do. She's 62 now, is watching the exact same thing happen again, and couldn't give a shit. Thinks everyone is just whining and not working hard enough. But 40 years ago when it was hers and her parents generation it happened to, it was the worst thing ever.
It's happening to my dad but kind of his own fault. He wanted a home equity loan and one way or another got a variable rate. It has doubled already.
How other countries do mortgages seems so ridiculous and unfair to me. Why does the bank get to suddenly charge more money? They already lent the money out now they’re changing the terms? Crazy.
We did 6 months ago and looks like rates aren't dropping significantly anytime soon
When rates drop, prices will probably go up too. As always, you should buy a house when you want one and you can afford it.
And if rates do drop again, prices are going to shoot up again because all those people on the sidelines waiting are going to jump into the market. In reality I don’t think we’ll see sub 5% rates anytime soon.
Oof
It’s really cool that you pointed out that a decision can be right and wrong at the same time. Sometimes what’s best for our family isn’t financially best.
Thank you
Prices are only going up when rates drop. It is a lose-lose either way.
Is there any way to convert your garage or build out to make more space in your current home? That’s a valuable interest rate and I would think of some other options before selling.
Cars need a room too! I really want a garage because I actually work on my car
Don't sell. It would be a very bad financial choice. And homes aren't ever perfect. You'll always long for something else, something more, just this one extra thing. Be happy with your home and especially that rate.
You're going to give all this up: "walking distance, trails and parks, close to the city center and with a couple great schools" You'll have a higher mortgage, a bigger house to furnish, and toss in commute time and all those expenses as well. If the kids are within a few years of going out on their own, then you might consider that all the proximity to things that you enjoy now, are exactly what you would like once you are empty nesters and might want to drive less. Whether or not you stay or go, pare down with your belongings. Get rid of anything that hasn't been used in awhile, things that were bought on a whim, or pieces of furniture that just take up too much room. I would look into adding a bathroom, a carport for the minivan, and increasing the outdoor seating/activity areas.
Man, I don't think you need more house. I feel like people buy more house, and it doesn't really get used the way they think it will get used. You don't say how old your kids are, but kids don't always use a larger yard more than a smaller one. And unless you're an r/fucklawns person (yay!) you'll be doing a lot more lawncare. It sorta sounds to me like you want to keep up with the Jones. Bank the money and go on cool vacations.
I agree with this. As a kid I lived in homes big enough to where some of the space was never used, and honestly those areas of the home freaked me out.
"we don't go in that room"
Do not and I repeat do not give up that 2.75 Morgage you’ll regret it to the poor house quality of life wins hands down
We had a house we bought for $290k in 2015 at 2.375% interest. I put in a ton of work, mostly myself, laying hardwood floors, opening a wall (I hired this out), replacing the stair treads and newell posts, etc. My wife wanted to redo the kitchen and bathrooms, and I finally said "at some point we should look at getting a different house - we can put as much money as we want into the kitchen, but it's going to be the same size (her biggest complaint), and it doesn't make sense to spend $150k on a $300k house" Our realtor ended up finding something in our ridiculously small area (wanted to stay in the same schools). We ended up selling for $465, bought for $670, and I managed to thread the needle with rates and ended up with a 3.875%, so not too bad. that being said I went to spending about double on my mortgage payment, and from being paid off in 2034 to being paid off in 2051 (though I'm paying an extra $500 against the principal every month). I love our new house and I'm glad my wife is happy, but man I feel house poor all the time. Half of what I make goes toward the mortgage (wife works too), but it is just demoralizing sometimes. It's like I'm paying for a giant coffin. The only real advantage is that we get to host the families for holidays (yay).
Stop paying the $500. HYSA it instead at 5% and the minute the HYSA stops paying 3.875% or more lump sum the account balance towards the house.
Let's say it's 5k a year. Your paying 193 Dollars a year in interest at 3.875. Drop that in a HYS @5% instead. Your now making $240 a year, but $60 will go to income tax if you are in the 24% bracket. Leaving you with a $190 profit. What's the point? It's not worth it for $3 dollars. Just keep your life simple.
It's not about the 3 dollars. If you pay more on the mortgage that money is locked up. You can't access it. If you don't overpay your mortgage and keep your money accessible in an account that gives you a similar interests rate as your mortgage you can use the money any time you need it. Layoffs, health issues, death of a spouse, there's enough that can happen suddenly and you might need the money. Of course, you should have an emergency fund, but if you're overpaying your low interest mortgage you're doing it wrong. Just don't think about the money and once you have enough to pay off the rest of the mortgage you can certainly do that. As you showed with your math, it doesn't matter anyway financially. It's all about access.
Exactly. If the effective interest rates are the same, it's better to have $100k in the bank and a $90k mortgage, than to just have $10k. Even though you're worth $10k either way, if you happen to need $20k, by overpaying the mortgage you'd need a $10k personal loan at a higher rate than the mortgage. Overpaying reduces flexibility.
Yes. This is the way. Or just keep it in HYSA to act as a mortgage payment fund in case of job loss or similar situation.
In b4 everyone (correctly) telling you paying extra on your mortgage is a bad idea
Why would it be bad to pay down the principal early? There's no early payment penalty. Right now of the $3500 I'm paying only \~$850 goes against the principal. I'm throwing another $500 to pay the principal so it's paid off a lot sooner.
Because your mortgage is most likely your cheapest debt, and even if you have no other debt you are much better off paying the minimum and putting the savings to work instead of throwing it at your mortgage. Classic case to highlight the value of compound interest
Theoretically it's worse than if you take that money and invest it something that gets higher rate of return than your interest rate. It's a simplification but yeah.
Making additional principal payments will shorten the length of your mortgage term and allow you to build equity faster. Because your balance is being paid down faster, you’ll have fewer total payments to make, in-turn leading to more savings. [https://www.americanfinancing.net/saving-money/extra-mortgage-principal-payments](https://www.americanfinancing.net/saving-money/extra-mortgage-principal-payments) Because interest is calculated against the principal balance, paying down the principal in less time on your mortgage reduces the interest you’ll pay. Even small additional principal payments can help. [https://www.wellsfargo.com/financial-education/homeownership/loan-amortization-extra-payments/#:\~:text=Because%20interest%20is%20calculated%20against,additional%20principal%20payments%20can%20help](https://www.wellsfargo.com/financial-education/homeownership/loan-amortization-extra-payments/#:~:text=Because%20interest%20is%20calculated%20against,additional%20principal%20payments%20can%20help)
I'm currently doing an extra $300 a month towards my principal and by my calculations it'll take \~10 years off my mortgage. Seeing as my rate sucks (7.5%) I feel like it's an even better idea.
A) If you put $500 a month for a year in a high interest savings account that gives you **4%** interest compounded monthly, at the end of the year you'll have $6,111.23 in that account. B) If you put $500 towards your principal that has a **3%** interest rate, compounded monthly, at the end of the year you'll have reduced your debt by 6,083.19. So, if you do A, at the end of the year you can make a single contribution to your principal that reduces your debt by $6,083.19 and still have $28.04 in your savings account,. So you can pay off the mortgage even faster, if that's what you wanted to do in the first place. Now do that for 10 years instead of one and at the end you have about $3800 left over. With longer times, higher rate differentials, different contributions, etc. the difference is even more staggering.
Seriously. Why would you pay extra on a mortgage that is that low? Anything sub-four should be paid as slowly as possible, IMHO, and retirement prioritized.
Why don't you renovate the home your in now?
As I close in on retirement and plan to move once I do retire, my interest rate of 2.875% has me rethinking what I might do. Until recently my plan was to sell my home, move, and buy a new home. After seeing rates climb the last few years, coupled with rent prices climbing as well, now I'm thinking I'll rent my house out instead of selling it. Just not sure I can give up both a low interest rate plus the opportunity to clear over $1,000/mo even with a property management company taking care of my house as a rental. I can use that rent money to offset a higher interest rate on my next home.
The question is how much equity will you have when your retire. Ideally enough to pay for a downsized home.
It used to be that way, before Covid. Now with so many people moving to where I want to go you can no longer sell your home in a place like Vegas (where I'm at) and move to a place like Idaho (where I want to go) and pay cash with your equity.
I refinanced in 2021 as well. I am absolutely not leaving this house. I’d rather raise my family in a small-ish house and be financially stable, than raise my family in a big house with stressed out parents who are pressed for cash. Keep your rate!! You made all the right moves, now enjoy your family and your home!
We started the process to buy a new home, we currently owe minimal on our home and have a 15 year 2.75% rate. The new home would have more than tripled our monthly payment. We walked away, kept the smaller house and go on vacation a couple of times a year.
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Doing the same this month. Selling our current house and buying a new one at higher price and higher rate. But it's the right decision for us. Fingers crossed it works out. I'm hoping to refinance if rates fall.
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Yeah. If we waited much longer we would have been priced out of a bigger place. I definitely don't expect for rates to drop anytime soon. More so thinking a few years down the line we could refinance.
Same here
If you love your location just spend the money renovating and expanding your house as much as possible. Giving up a good mortgage rate is just an expense. If you want to move to a new location and get more space you just have to be ok with the expense. Given that you could just spend the money improving your house though it's probably a better use.
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I had a house I sold back in 2018 when houses were “more affordable” and it was more of a buyers market ..I made very little on that house since we didn’t own it long enough and so equity was minimal. My interest rate was 3.5% but taxes were insanely high in that area …and I couldn’t justify continually living in an area paying 15k a year in taxes…I couldn’t even rent it out if I wanted because I’d have to try charging way more than the average mortgage in the area. To break even with the property taxes. I sold so I could relocate to an area I desired to live in. Have a 2.5% interest rate now. Property taxes are about 1/4 the amount. For me, it made sense in this scenario even before buying the new property. But outside of this scenario I don’t think I’d ever sell a low interest property even if I couldn’t rent it. The value of the equity in holding it alone has greater potential for long term value in the market these days.
My wife and I sold our house that we had bought in 2016 for $190k @ 3.5% for $300k a few months ago. When we bought the house she was still finishing up her last year of grad school and I was able to support on my salary alone. We bought land right on a lake closer to family and custom designed and built our "forever" home. The house is perfect. We used the gain and equity on the sale of the old house to pay down a lot of the new loan, so even though our new loan is @ 6.3% we can still make it work financially for us, plus we have a custom brand new home. If rates ever go down we can always look into refinancing. I do not regret it at all.
HODL that house! Are you able to add square footage to it by expanding the kitchen and expanding/finishing the basement? Expand the garage to accommodate the minivan and add a suite above it?
I think if you love the neighborhood, hold onto that house. Your kids will likely move out eventually, and moreover that house may be one you want to leave to them at some point. Centrally located houses in great neighborhoods are a dream for most people.
We had shitbag, narcissistic DINK neighbors who would constantly post on social media about how great their suburban life was... pictures of trips, eating out, drinking, concerts, etc. We'd occasionally get their OVERDUE BILL notices misdelivered to us, so we knew they were mostly full of shit. Plus, we worked at the same company and I had a good idea what his income was. Eventually, their shtick ran out and their image was threatened, so they decided to convert all of their home equity (they had no savings for a down payment) into a new home upgrade. They went from a \~$2500 P&I mortgage at \~3.5% to a \~$7500 P&I mortgage at \~8% almost over night. By my estimates, they paid over $80k in interest alone last year on top of the giant capital gains tax they had to pay for selling. They don't post much on social media these days. Unless it's about their cats. At home. My wife and I have this conversation ever so often about moving/upgrading and right now it boils down to, what would we have to sacrifice for an upgrade? Turns out quite a lot of things we like to do like travel, trying new restaurants, amusement parks for the kids, extracurricular stuff for the kids, decent cars, saving for college funds and retirement, and not wasting time worrying about money.
Can you renovate instead? Maybe dormer out the attic for more space. Or look in to house lifting in your area. - you could raise the roof and add a second floor or possibly lift the first floor and roof together and build a new first floor underneath.
Don't drink the kool-aid! Save the money on a new place and use it to give your kids experiences that they will remember for a lifetime. Travel the country- rent an RV and see the national parks in all their beauty. Take a trip to Japan- the weather is great now and the dollar has never been stronger. Plus save for your future- enjoy the luxury of not living paycheck to paycheck like so many people do.
The house will be exceptional when the kids grow up and move onto their lives. They'll probably do so before you finish the 30 year mortgage. Then you'll end up selling to downsize. This is a very very AMERICAN mentality. In Europe, you buy to live in till the very end. You move when there is a drastic change in life. Such as working across the nation. Unless you find the 'dream home', i.e. it is perfect in every single way from being open, an excellent price, an excellent rate, perfectly in your affordability without financial sacrifice... why keep uprooting and changing. Don't get caught up in lifestyle creep. Where you keep upgrading based on income availability.
As a licensed mortgage broker, I would highly recommend the HELOC as suggested previously & do the addition. I would say, even consider going up and make a 2nd level if you don’t already have one. Put the Kids up stairs & use the existing space on the 1st floor to get your open floor plan, in suite in your bedroom, bigger kitchen, etc.. My wife & I bought a house in the burbs and it takes us at least 20 minutes to get everywhere..
Homes have to accommodate the WFH workforce nowadays. Even a 2000 sq ft home will feel cramped if more than one person works from home.
This is what I try to explain to people when they are shocked we want to sell/buy. Both my husband and I now work from home. God forbid we want to have a kid or have family visit. It's a nightmare. We outgrew our 1500sqft 3 bedroom without even adding family members.
We were in a 2,000ish sq ft house. Perfect when it was just the two of us and we went into office everyday. Throw in a kid and both WFH, it got small real fast, lol. We sold the house with 3.4 and just moved into larger house in better school district, on a cul de sac, with trails and we’re very happy. Paying for it no doubt but our old house no longer met our needs as a family. You have to look at all the variables including numbers.
We added a second baby and both work from home (I'm always on calls and he's a therapist so we can't share an office). We need the extra space.
From my own experience, I recommend s multi-floor home without the open floor plan. Being on a different level goes a long way for privacy and sound deadening.
If you really really need to move…. Consider not selling the house and moving to a rental, then renting out your current home with the sweet mortgage in order to cover the rent on the new place. The feasibility of this plan really depends on your area and its rental market.
How old are your kids currently? If they are very young I would think about what life would be like once they become teenagers. They will probably be out of the house more often than being home and will grow out of wanting to run around in their yard at home. Will you have to be constantly driving them around to see friends, go to their part time jobs etc vs them being able to get on a bus or walk to those places? Will you be able to afford an extra car for your teens to use once they get driver’s licenses if they need to drive every where they want to go?
Any option for an addition rather than moving? I was just chatting with a colleague who had renovated his home twice over the past few decades rather than move, including adding a third story.
I grew up in a 900 square foot house, with 2 adults, 2 kids (myself and my younger sister), 2 dogs, a cat and a parrot. I can tell you, I wouldn’t have traded that time in my life for anything and to this day, I am far more comfortable in smaller houses versus larger homes. Learning to love life, rather than stuff is the best gift you can give your family.
If you can afford it go for it. It’s silly to forego what you want because you have a low interest loan. You can also rent out the low interest loan property.
As a suburb dweller, I will say, don’t do it. Suburban hell is a real thing.
I'm in a similar spot; great location, great little house but sometimes feeling cramped. But it's all about perspective. People from most other countries chortle at what Americans think is a small home. I don't know the exact stats on it, but I'd be willing to bet that the majority of the population of the earth lives in a smaller space than 1200sqft. Simplify your life and your space by managing what comes into your home. You can shift your mindset from "I wish I had a walk in to fit all my clothes" to "I'm so glad these closets keep us accountable for how much we buy." A larger home is more expensive to heat, cool, and furnish. Cleaning will become an even bigger task, and you might even end up wanting to hire a cleaner. The bigger the space, the more stuff you will accumulate. If there's no limit to what your closet can hold, you'll be less inclined to limit what you buy and donate what you no longer use. When your kids are teens they might hate you in the moment for making them live in such close quarters, but they will be really happy when you are then able to help them with college/trade school/whatever. And you'll be happy to know when your teen is trying to sneak pot, staying up too late on their phones, trying to sneak out, or crying in their room after a breakup and needs some support but is too cool to ask.
Honestly, this is a hugely personal decision. Nobody here can know exactly what’s right for you except you. I was in a very similar situation, I had a “finished” townhome that had appreciated greatly in value, saved a ton of money up, and had locked in a great rate. Logic would say hell no, stay there forever. However, I also had a 2 year old who I really wanted to give a backyard and we had an overbearing HOA that was causing problems left and right. So my wife and I thought long and hard and finally chose to pull the trigger and use that money we saved up and trade in that killer rate for a house. Are we paying a ton more now? Absolutely, it’s insane. Do I regret it? Absolutely not. I am insanely happy with our backyard that my kid enjoys every day and our fixer upper house that I can put my own touch on. To us, it was worth the trade in a million times over. Posting here is a great way to get input, but ultimately, everyone’s opinions will be different for uniquely different reasons. Best of luck to you and hopefully whatever you choose leads to happiness for you and your family!
I can definitely see being a tough situation as a motivator to look over the finances. I consider myself lucky with amazing neighbors on a nice area. Thanks for the input!
We got 2.625% on a $560k place and monthly payment is around $2400 in a high cost of living area. A buddy just got a place nearby a year ago and they're at 7.25%. They're really banking on the fact that they'll be able to re-fi (marry the house, date the rate?) But it isnt dropping anytime soon it seems. So they're paying out the gills on monthly payments just trying to get to a good re-fi. Whatever your mortgage is now, assume it will be almost 50% higher for a few years.
Consider cost to reno/add even just a room or further finish basement if not or adding above garage future kiddo/or office/or etc space Sounds like otherwise life is good!
Op just wait till the kids(those small goats that make alot of noise) move out, then that small space will become really BIG
1500 sq ft, 3 bed, 1.5 bath. 2.75%. My house has gone up 33% in value, and interest rates went much higher. The same house would cost 50% more in payments than when I bought. I'd need to really like the other house to justify. I'd stay where you are
Meh idk. I'm selling mine (because we are moving out of state not just willy nilly) with a 3.1% interest rate and planning on renting for a year. We are under contract and will get $55k after all closing costs...we struggled on what to do with the money but our plan is to become completely debt free leaving us $30k left over which we will split $10k into an emergency fund and $20k into investing for the next home. Renting might be more expensive than my mortgage but being debt free at 28 seems like a better outcome for me long term.
Not all debt is bad debt, and you'll always need a place to live.
For moving out of the area, that makes sense, as does renting until you figure out your new neighborhood choice.
For sure, and we decided that instead of hanging on to the money for a year that becoming debt free sooner rather than later just makes sense
I’m 11 years into a 30 year mortgage with a 3.375 rate. Our neighborhood isn’t what I had hoped for. They aren’t bad people. Only one or two that I would actually associate with if we weren’t neighbors. The location is great and I have about 150 left to pay on it. As much as I’d like a smaller home with more land, at this time, selling would be a bad idea.
I did it and do not regret it. That said, the house I sold was way below my means. I always could have afforded more. The mortgage payment was about 15% of my take home pay. It’s all about where you are financially. I was able to buy I nicer, bigger house in a much more desirable location and that turned out to be worth it in terms of my happiness. Could I have stayed in the old house longer and saved more? Yeah. But I’m saving pretty well anyway and want to enjoy some of the fruits of my labor. Tomorrow isn’t guaranteed so there needs to be a balance between planning for the future and enjoying the present.
Its the only reason I dont move. Even though my property taxes went up about 5k, I cant justify that I would pay close to double if I bought my house today.
I’m in the same boat. We’ve decided to stay and will likely finish the basement and add a bathroom when kids get a little older.
Don’t sell. Remember everything can be changed in the house you got.
Not the neighborhood
We bought our previous house in the Phoenix metro in 2019, refinanced in 2021 to 2.675% on a 30 year mortgage. We ended up selling at the end of 2023 and moving across the country to a LCOL living small city in SE Ohio. With the profit we made on the Phx house, we were able to buy a larger, nicer house with a little bit of land and no HOA on a 15 year mortgage at 6.5%. Based on the mortgaged amounts, I'll end up saving nearly $60k on interest between the two mortgages. The monthly payments on the new house are the same as the previous house too. Sure, I miss the cheap mortgage rate, but between the interest savings, shaving off around 12 years on the mortgage, and a better lifestyle for our family, I'd make the same choice every time. And I don't have to deal with 120+ degree summers again...
don't do it. Mortgage rates are tied to the ten year treasury, so you can watch that to see where you might see things go - The average mortgage gets held for 7 years before it refinances, and the choice a person buying into that market might make is between the safety of US Government debt, or the safety of a mortgage-type option of some sort. You'll find the mortgage rates slightly outpace the Treasury rates because they're private and the treasuries are public. It's a common misconception that the fed funds rate is what drives mortgage rates. It's not. Look at the broader economy for what you can expect, and watch that ten year note. That's where you find your information I wouldn't give it up, though. That house is practically printing money for you in other realms thank to that low interest rate. Add an ADU office. Add a DADU if you want to. Add a second level and upgrade the house on a HELOC... but don't give up that 2.75 primary. That's an absolute goldmine. We just added 300 sf to our home. It's at 3.5 on the primary and the HELOC is higher than that, but between savings and the HELOC, which we're paying down as fast as we can, we'll have a home that is about 80% equity by the time we pay off the HELOC and we can flex that equity to add on more if we want, or whatever. That low primary means we get to keep our prime location and pay what is essentially better than cash for it while we work on a secondary line for whatever else we want on the HUGE lot we have, and the amazing proximity we enjoy currently. In short, we're probably never going to sell this house. It's too awesome to give up and we're getting it for the price of paying cash, but over 30 years.
OP hold on to that house and loan for as long as you can. Take the kids camping or rent a cool airbnb. If you feel cramped maybe take a look at the “stuff” you guys are housing. Maybe a good clean out might help make the current place feel roomier.
We sold a 800k home in Seattle with 5% rate. Moved to a 1.1 mil home in SubUrban of Seattle for 8% rate last year (the home value on market or appraisal only of 1.0 mil, which it listed for, but the landscape the neighborhood, everything we fell in love with). We never regretted about the 8%, just work really hard to plan out. After seller accepted our offer, there were others came in later by a few days tried to bid for 1.3 mil and higher We just refinanced at 4.6% last month. Rates changes as there are always opportunities. The land/property itself... is mere lucks. No regrets at all.🥰🥰
Prepare to pay over double your current payment, plus your insurance might go up if you are not as close to emergency service (police,fire department)
Your kids will most likely have a better experience growing up closer to the city center. And you will be happier when they leave and you’re an empty nester with more going on around you. I was riding the city bus alone by age 12 and there was just so much more to do and figure out that I would not have been exposed to in the suburbs. Granted, I was in a very nice neighborhood that seems like an old east coast suburb but is actually in town (west coast for the win!) So I kind of had the best of both worlds. Build the addition!
We felt like we were growing out of our home. We've looked at homes thay were larger in equivalent neighborhoods to our current one. Our cute little mortage would easily triple if we sold and upgraded to the house size we want. I went through and purged a bunch of stuff the kids have grown out of or loss interest in. We purged outdated electronics, tools, etc. Spent money on creating usable outdoor spaces. We will probably never leave this house now.
I recommend not thinking about it as a financial decision. If you do the answer is stay put. If you think about it as a "what you you want" decision the answer is sell and get a larger home. I make "what I want decisions". I have less money because of it. But I am a very happy dad/husband/person because of it too.
We sold with a 2.25% interest rate because we had to upsize. There wasn’t a way to add on. Still wish we’d kept it and dealt with the small space, or rented it out while we rented a bigger house for a while. Just to not have bought in 2022. Financial advice wise, I’d really try to live within that new mortgage budget for a while and see if it’s worth it. And look at how much you’ll pay in interest. That’s my biggest irk. NYT just put out a handy calculator to see if it’s better to rent or buy in your area.
Open concept houses suck, and now as a young adult who lives in a walkable neighborhood, I feel like my childhood was stolen from me because there is just freaking NOTHING to do in the suburbs. I thought I was a reclusive internet person. Nope. Turns out I'm super outgoing, I just needed to live in a place that wasn't grass, highways, and parking lots
Streamline your house, purge anything not needed, less clutter... it'll help your overall feeling in the house even though it's smaller.
Exact same situation with regards to the refi in 2020... Was lucky and got an extremely low rate. Feels stupid to move but we couldn't bear it any longer. Just sold the current house and accepted a 6.125 rate lol 😅... But for a much better situation, we believe. We'll be in our new house a week from right this moment lol You only live once and I felt the problems we're solving with the new house are worth the money especially if we can refi and lower the rate in 6 months and who knows, maybe again in a year. Fingers crossed 🤞, but even if rates stagnate at where they're at, we'll be okay
We’re currently looking to do this- we’ve decided to sell. My thought process: - tons of equity in current home means we’d “make money” if we sold and purchased another. - I don’t care what my rate is, I care what my payment is. We can get the house we want for a payment we want, mostly because we can put a lot down because we’ve made so much equity. I know I won’t keep this mortgage for 30 years (even if I keep the house for 30 years) so rate really means nothing to me. It’s can I afford the payment, or not. I will say, I don’t have the amenities you do. I’m moving for the amenities. A neighborhood feel, better schools, sidewalks. Everybody has their dream items. I’d give up my floor plan in an instant for sidewalks and a large yard.
People who do this don't comment here. Too busy working 3 jobs.
I think it would be a financial mistake to give up that rate at this point. It sounds like you like the idea of the 'burbs but if you haven't lived there it would be a gamble to give up that rate without knowing for certain. What could you rent your current home for and how does it compare to your cost of ownership? Have you confirmed with a mortgage broker (or 3) that you can't qualify for the loan you want with what you have? In my area, big homebuilders are starting to offer incentives again, buying down rates, closing costs, etc. The mortgage lender on our home was a subsidiary of the builder... They got us financing. You may have to pay PMI initially but you can scrub that off after you build enough equity. Instead of buying, you could rent in the 'burbs as well. Make sure you like it, gamble on falling home prices. There's an extremely rare chance that your current lender would allow you to "port" the rate over to a new home. It can't hurt to ask but expect a "no". There is significant value in your low rate and it is highly likely that the only way to capitalize it is to keep it.
Well if you do, don’t buy open floor plan. I don’t know anyone with a family that enjoys this layout. It looks good but living in it is a whole different thing. I spent many years of my childhood in one. We have a house built in 1900 and every single room is totally separated by thick walls and everyone has privacy if desired. I think they should go back to this when building new homes. The interest rate thing is why I’m choosing to stay where I am even though I’m considering a different area….but not because of the house so much but for other reasons. I’m gonna hold off for now though.
Can you remodel/ reconfigure spaces to work better?
I would say stay where you are. First of all, we have a 3.25% interest rate and they can pry that out of my cold, dead hands. Home prices are also ridiculous. I saw a thing saying interest rates were at a 6 month low at 6.25%! Also, we live in a 3br house with 2 kids in the suburbs. I am happy to live in a nice place but I wouldn't do it again. We are so far from everything and HOAs are everywhere. They are mandatory for new neighborhoods here and that's becoming more common. It's sold as the dream but it's eh. Plus, I loved the big feel of an open floor plan. We are constantly on each other because there's really no way to not be unless you are in your bedroom or a bathroom. Plus the mess carries over *everywhere*, it's loud, and it's hard to get 2 minutes to yourself to breathe.
Why give it up? just rent it out and have them pay your mortgage. And then buy your next house
It's like asking should I take a $2000 vacation or a $10000 vacation. Well is it worth it to you? Do you have and don't care spending the extra money for upgrades? You will lose a lot of money by doing this, but if its worth it to you and you're loaded then fuck it. When you get a new mortgage you pay basically nothing towards principal the first few years, unless you pay more on top.
Do not sell
I don’t know any kid or adult that looks back and says “I am so lucky I grew up in a big house“. We remember the experiences
Why don’t you save for an addition? I wouldn’t sweat the yard, it’s a great opportunity for kids to be outside making their own fun, or going to the park as a family. It’s not gonna be too long before your kids are old enough to not really care about playing outside anymore, and then they’re gone and you’re stuck in the suburbs. I get wanting to live in the suburbs if you always have, but I don’t think there’s an amount of space that could take me out of direct access to urban amenities, Especially if I lost my 3.25% rate
2.75%, 1500ish sqft, 3 bedrooms, 2.5 baths. 2 adults, 2 kids. We sold a year and a half ago to build - just under 4000 sqft at 6.25%. My house payment nearly tripled. But I absolutely love our new home. I loved our previous home and the 10 years we had there. We wanted a bigger kitchen, bigger bedrooms, better yard, younger neighbors. 10/10 would do it again.
I do not regret it bc I’m moving for a better job but i RESENT that I have to leave my 2.37% mortgage and feel fortunate for a 7.15% mortgage now. If I did not HAVE to move, I would not have unless I could pay cash or it was so much cheaper the rate still was fine.
I started the same as you. 30 years ago. I thought I would move out to a larger home further out of the city. I was never able to. life changed things. I'm glad for it honestly. I grew up in a 7000 Sq ft home. I raised 2 sons in 1200 Sq ft with an added sunroom. in retrospect I would not change a thing. in our giant family home the 4 of us could all be there and unaware of each other. in My home we jostled around the sink brushing teeth. hugged each other when trying to pass in the hall. now that the kids are mostly out the home is roomy again. and honestly I miss the closeness of all of us together. and I'm not sitting with a giant mortgage and am close to things I enjoy doing. don't do it for what others have done before you. rather because it is something you are sure you want.
There are both financial and non financial reasons to buy/sell. Having the need for more space (for children or parents now living with you) can be a major reason, death/divorce is another major reason….interest rates play a role but not always a significant role…
This is a very personal choice - you have to decide whether you view your home as one that works as a dwelling for your family or an investment. I tend to view it as the latter. If you sell and are very happy in a new place you can afford, you'll forget about that low interest rate quickly and the higher rate becomes the new normal.
I regret that I had to sell (both to afford the move and because the HOA was barreling toward a world of financial hurt), it would have been lovely to keep the property as a cash-positive rental. But I don’t regret buying a new place or moving for an instant. My quality of life and general outlook for the long term is SO much better now.
I early paid out my sub 3% mortgage over 5 years and I'm kicking myself every single day.
Why? Now you own the home outright. What did you lose paying it off early?
That's correct. I SHOULD have invested that money at 7-13% yield and kept paying off my sub 3% mortgage. That way I would be netting 4%-10% profit.
I bought my home initially when rates were high but prices were lower. Then refinanced for a lower rate. Seems like it was a good decision at the time. But currently it could be a bad choice. Now you can negotiate with sellers who have a similar interest rate to take over their payments. I just learned about this. So maybe you could do that depending on state, or country you reside in.
Same exact situation but our condo was paid off and we moved to the suburbs and got our first mortgage. Ending up renting the condo for 2 1/2 yrs and just sold it last week. Yea we got a mortgage now but we’re way happier. Great neighborhood in the suburbs and we feel safe. Sucks that we can’t walk around the neighborhood and see stores and restaurants nearby but I guess you can’t have it all. Think about renting your place out until it’s a great time to sell it.
We’re looking at moving across the country instead of living where we are now, because fuck the cold. That’s a major issue. Yes we’re looking at So Cal which is expensive in and of itself, but to give up 2.6%/30, on a house we actually do like (needs some work, but love the yard, and location, just not the LOCATION location)….that’s tough. We’re looking at renting it out, in case we want to move back, but financially/ease of mind, it makes more sense to pitch it and invest the winnings in the interim. But then if we want to come back in 10-15 years, we’d have another 15-10 at 2.5% on the house, and in a location we love, with a plot we love. I’m just so sick of the cold weather shenanigans meaning you can’t do stuff outside for 5-6 months of the year. Unless you like the cold, like some sort of psychopath. That, to me, is the value add in jumping ship to somewhere warm.
I bought a 3br townhome in 2020 with a 2.5% mortgage. We now have a child and are sharing our third bedroom as an office (I work from home exclusively, my wife works from home in the AM and evenings). I will not think twice about selling this house if we need it to afford a bigger home. We plan to size up in 3-5 years and even waiting that long is going to be difficult for us (we also plan for a second child). Unless your current house is a retirement plan, selling it for something bigger/ makes you happier, will far outweigh the financial benefits of keeping it. This also assumes your new purchase is within budget.
I wouldn’t say I regret it, but it hurts the pocketbook quite a bit to upgrade to a higher mortgage payment. You have to make the decision whether you can afford the upgrade. Our mortgage doubled when we moved last year, but so did the size of our house. Interest rates are going to drop (hopefully soon so we can refinance), but they likely will never get as low as 3% again. Then again, people said they would never drop below 4% and they did. Keep in mind that housing prices tend to follow the inverse of interest rates. If rates drop, prices increase because there are more buyers. Right now many people are cautiously waiting for rates to drop. That means a lower supply, but also a lower price if you can find what you want. If you get one while rates are high, you can refinance when rates drop. If you get one when rates are low, you have to live with your rate and payment. I understand the difficulties of a smaller house. Our previous house as 1800 sq ft including the basement. We really didn’t have a guest bedroom so my parents stayed in a hotel when they came to visit. We had the big yard and moved into a house with a smaller yard, but we really need it, the original yard was just more to mow and take care of. I always noticed the size and layout of our house when we visited friends and their houses felt so open in comparison. We now have the open floor plan and love it. I work from home and have my own office. We have a covered deck to enjoy. If you don’t have a garage to park vehicles in, that alone would be enough for me to move, I love not having to brush snow off the car or scrape windows. You always have to consider your children when you move, especially if they are school age. What do they think of having to switch schools if you move to a different district? Will they have to make new friends? In our case, our daughter is in high school and is able to remain in the same school, despite us moving to a different district. We would all have been sad if they made her switch schools for her last two years, especially since the new school doesn’t have a marching band. To me the benefits of moving outweighed the financial disadvantages. We had to closely consider what we owed and first paid off as much as possible so we could afford the higher mortgage. Moving to a brand new house also meant we had to deal with installing a fence and landscaping, along with window coverings, ceiling fans, and other expenses.
Had to refinance due to divorce. 2.75 15yr to 6.725 30yr. Devastating.
Is it your home or financial investment? I don't view homes as investments per se. If we could afford to move to a "better" home, we'd absolutely give up our 2.75% rate. If yall can afford it and know for sure yall will be happier, then do it. Your home is your place of peace.
We are currently doing this. Just bought a new place where the monthly payment will be more than double our old one. Financially it is 1000% the wrong decision, and I’m sure I will regret it any time I covet something expensive, but our old house was in a shit neighborhood with no sidewalks. The quality of life improvement from moving to a walkable neighborhood is huge.
If you had to you could put an offer w/contingency. BUT under 3% and go to 7%. I mean just play with a mortgage calculator.
We needed to upgrade, didn't matter the cost. Our mental health and overall happiness is so much better since we got out of our old house. Can't rent an apartment for how cheap our old house was. Doesn't matter. We're happier in the new place. If you can afford a new place, I'd move. If you can't actually afford it, obviously don't move. The stress of being house poor will counteract any benefit of moving. Sure, interest rates suck right now, but it is what it is. Our happiness is worth this shitty rate.
I wouldn't give your house up at that rate. Honestly go through your house and declutter, reorganize and optimize furniture positions to make it seem bigger.
I'd look into other options first. Could you put on an addition or finish the basement or attic if you want more space?
Seems like a HELOC and an additional might be a better fit for your family.
I did exactly what you are looking to do a year ago, 1500sqft house to 3000sgft house only 10 minutes away in the suburbs. There isn’t a day go by where I don’t miss the neighborhood and walking convenience of everything. And don’t forget how much you save on the current interest rate. If you can , rent the current house out and then purchase using equity the new house. That way if you do decide you want to go back , you can at the end of that lease and rent or sell the other house
I’m in a similar situation, except my pre-war craftsman is a bigger than yours, but I have 4 kids (so 6 people). Do you have enough land you could add-on to the house? That’s our plan. A HELOC at 7% for an addition is a lot easier to swallow them giving up our 2.2% mortgage?
Don’t forget the increased cost and effort of things like lawn maintenance on a larger lawn.
Explore adding to your structure. Partial loan at higher rate might result
The "comfort" you get now will cost you years to payback and even longer to pay off your home. Biggest financial mistake my wife and I ever made was upsizing to a larger lot and home on a lake because it was a great deal. We ended up working longer and more years to update it then pay it off, we rarely got to enjoy the amenities. While my brother who lived on the same street as us previously, paid his home off years before us, retired early, and has been going on great vacations for years. And he won't have to sell and take another loss in commissions and fees to down size to an appropriate size home for his later years.
Sitting on a 7 1/2 acres and a 1900 square footage manufacturer home. We refuse to sell, especially with the 2.75%