I love my mortgage rate and just can't bring myself to part with it, but we're expecting another baby and should be moving to a bigger home in a better school district. What should I do?

Sign me -- In Love with My Mortgage Rate.

DEAR IN LOVE WITH YOUR MORTGAGE RATE, 

It's hard to let go of a great mortgage rate. I understand. My goal is to help you make the best financial and lifestyle decision while being realistic about today’s market. Here’s how I’d approach your situation:

STEP 1: CLARIFY PRIORITIES

First, let's define what matters most to you:

• Is the top priority getting into a better school district before your kids reach a certain age?

• How urgent is the need for more space? Can you make do for a little longer?

• Are you open to creative financing solutions?

Understanding these answers will help me guide you toward the best move.

STEP 2: WEIGH THE COST OF STAYING VS. MOVING

You locked in a fantastic interest rate—likely in the 2-4% range—which is a huge advantage compared to today’s rates. However, staying in a home that doesn’t fit your needs has its own costs:

• Will you need renovations or additions to make it work?

• Will staying mean compromising on school quality, commute time, or overall lifestyle?

If the downsides of staying outweigh the financial benefits of your current rate, it may be time to move.

STEP 3: EXPLORE CREATIVE FINANCING

If the main hesitation is today’s higher interest rates, we can look into options like:

• Assumable Mortgages – If you buy from a seller with a low-rate FHA or VA loan, you might be able to take over their mortgage at that rate.

• Seller Buydowns – In some cases, sellers are offering concessions to help buy down your interest rate for a period of time.

• Adjustable-Rate Mortgages (ARMs) – If you don’t plan to stay in the new home long-term, an ARM could offer a lower initial rate. An ARM can also be refinanced when interest rates improve.

• Home Equity Strategy – If you have significant equity, you might be able to keep your current home as a rental and leverage that equity toward the new home.

STEP 4: CONSIDER MARKET TIMING AND INVENTORY

Right now, fewer buyers are in the market due to higher rates, which means:

• Less competition for homes in your target school district.

• Better negotiation power—sellers may be more flexible on price, concessions, or even covering rate buydowns.

If rates drop in the next few years, you could refinance and still have locked in a home at a potentially lower price than if you wait until rates fall and competition increases.

STEP 5: RUN THE NUMBERS

Before making a move, I’d work with a trusted lender to run different scenarios:

• What would your monthly payment be at today’s rates?

• How much could you afford with a seller-paid rate buydown?

• Would keeping your current home as a rental make sense?

FINAL THOUGHT...

There’s no one-size-fits-all answer, but if space and schools are pressing concerns, we can structure a move that minimizes the impact of higher rates. If waiting makes sense for your family, we’ll monitor the market together and be ready to move when conditions improve.

Would you like me to put you in touch with a lender to explore financing options? Or would you like to see what’s available in your ideal school district?