Possible reasons to stay put
One of the most obvious reasons to stay where you are is the financial hit you’ll take.
Say you’re locked in at a 3% mortgage for a $400,000 home. Assuming you made a 20% down payment for a 30-year mortgage, your monthly payments hover around $1,345.
If you decide to upgrade your home, you’ll no longer be able to get this mortgage rate, as the average thirty-year fixed mortgage rate now sits around 6.67%.
Even if you upgraded to a home that’s at the same purchase price, your mortgage payments would increase to about $2,040.
But if you want to accommodate a growing family, it could mean your home will need to be bigger, hence a higher purchase price. So if you end up purchasing a home for say, $500,000 in exchange for an extra bedroom and a larger yard, that monthly payment would rise substantially to around $2,500.
None of this includes other costs, like closing fees, paying a moving company and a potential commission to your real estate agent. It also doesn’t account for market price increases.
Even if you’re able to reasonably afford a new, higher mortgage payment and the associated costs, there are other opportunity costs involved. The money you could save by staying put could be used towards other expenses or financial goals.
Maybe your family wants to keep going on their annual vacation to Hawaii, or you’re hoping to put more money towards your retirement accounts. A higher mortgage payment could prevent you from doing all that.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreWhen to consider upgrading
Despite the potential to save by staying in your current home, there are times when it may make sense to move.
Needing more space and making sure your family lives comfortably can be absolutely worth it. You may also be facing other lifestyle changes, such as accepting a big job promotion, but your new office is too far away for you to commute where you currently live.
When thinking through your decision, consider what it is that makes your family truly happy and whether moving to a new home fits into this vision.
Does your family really need a new home to get more space, or can you renovate so that the home flows better? Do you need a neighborhood that has more family-friendly amenities? Do you have a good understanding of the time and effort it’ll take to maintain a larger home?
If you’re leaning towards upgrading, be sure to calculate how your new housing costs will fit into your budget. Aside from property taxes and insurance, be sure to think about how you’ll afford ongoing maintenance for your new home, too.
Find the Best Mortgage Rates to Fit Your Budget
Looking for a great mortgage rate? Don’t overpay on your home loan! Get updated mortgage rates, expert insights, and tips to lock in the best deal tailored to your needs. Save on monthly payments and make homeownership more affordable. Start your journey to savings now.