Why Would I Move with a 3% Mortgage Rate?

Why Holding Onto Your 3% Mortgage Rate Might Be Costing You More Than You Think

If you’re sitting on a sweet 3% mortgage rate right now, I get it you’re probably pretty hesitant to give that up. Maybe you’ve toyed with the idea of moving, but then that nagging little thought creeps in: “Why would I ever give up that rate?”

It’s a totally valid question. But here’s the thing when you ask that, you might be unknowingly putting your future needs on the back burner. Most people don’t move just because of their mortgage rate. They move because their life changes. So, let’s flip the script a bit and ask instead:

What are the chances you’ll still be living in your current home 5 years from now?

Take a minute and picture your life over the next few years. Are you planning to grow your family? Do you have kids who might be leaving the nest soon? Is retirement on your radar? Or maybe you’re just bursting at the seams and feeling cramped?

If nothing’s changing and you love where you live, then staying put probably makes a lot of sense. But if there’s even a small chance you’ll move down the road even a year or two from now it’s worth thinking about your timeline. Because even a short wait can have a big impact on what your next home will cost.

What Experts Are Saying About Home Prices in the Next 5 Years

Fannie Mae surveys over 100 housing market experts every quarter, and their consensus is clear: home prices are expected to rise through at least 2029 here in New Hampshire and beyond.

Sure, the increases might not be huge each year, and some markets might experience slower growth or slight dips here and there. But over the long run, prices almost always go up. And over the next five years, that steady climb could add up fast.

For example: say you plan to buy a home priced around $400,000 when you move. If you wait 5 years, based on these projections, your next home could cost nearly $80,000 more.

That’s right the longer you wait, the more you’ll pay.

What About Mortgage Rates?

You might be thinking, “Okay, but maybe rates will drop again soon, so I can catch a break.” Unfortunately, that’s not what the experts are saying. Rates are expected to come down a bit but not return to those record lows like 3%.

So, the real question isn’t, “Why would I move?”  it’s “When should I move?” Because waiting for the “perfect” moment might actually cost you more in the long run.

Bottom Line

Holding on to your low mortgage rate is smart until it starts holding you back from your next move.

If you know a move is likely for you even if it’s a few years from now let’s talk. I can help you crunch the numbers now so you can plan ahead, and make the best decision for your family and your finances.

What price range do you want to see this analysis for? Reach out and let’s have that conversation because understanding the math today can help you take control of your tomorrow.