Q&A: Should You Give Up a Low Mortgage Rate to Move? How to Think It Through

The question comes up in some form every week: we have a low rate on our current home, and we want to move, but giving that rate up feels like throwing money away. Is it?

Here is the plain version. The rate is one line in the decision, not the whole decision. It is a real cost, and it belongs in the math. It just does not belong there alone.

Start with why you want to move. Most homeowners who ask this question are not chasing a different house for fun. The home is too small now, or too big. The yard that was a feature is now a weekend job. The commute moved when the job did. A parent needs to be closer. None of those reasons care what your rate is, and none of them get cheaper by waiting.

Then price the stay. Staying is not free. It costs the square footage you do not have, the drive you make every day, and the project you keep deferring. Write those down with rough dollar figures where you can.

Then price the move. Ask a lender to show you the full monthly cost on a home at the price you are considering, with property taxes, insurance, and any HOA dues included, on the loan programs you qualify for today. Ask about every option, since some loans can be assumed by a buyer and some cannot, and the answer depends on your specific loan. Ask what your current home could sell for and what you would net after costs. Put that next to what you pay today.

Now compare. Some homeowners run this and find the gap between the old payment and the new one is bigger than the problem they are trying to solve. They stay, and they stay with a clear head instead of a vague sense of being stuck. Others find the gap is smaller than they feared, or that the reason to move is worth more than the gap. They move.

What trips people up is treating the rate as a verdict instead of an input. A low rate is a good reason to run the numbers carefully. It is not a reason to skip running them.

One more thing. I am not going to tell you where rates go next, because no honest agent can. The numbers in front of you today are the ones you can act on.

This is general information, not legal or tax advice. For loan questions, including whether your current loan can be assumed, ask your lender.

See what your home could sell for: https://www.previewarizonahomes.com/?utm_source=blog_pah&utm_medium=marketing&utm_campaign=daily

Jon Hegreness, REALTOR / Associate Broker, Howe Realty
(623) 826-0888 / JonHegreness@gmail.com / License BR540940000
9059 W Lake Pleasant Pkwy, B-200, Peoria, AZ 85382
previewarizonahomes.com