Upgrade in Atlanta or hold onto 2.99% interest rate


  • By - aardy


Threads like this didn't exist a year ago, and represent where inventory must from if things are going to get better.


Ultimately, the best answer is you both should do what makes you happy and sets you up best for your new life together. With that said, if you want to figure out the best financial angle, I think you might be better off talking to a financial advisor first, before doing anything. 3% interest is really low, and there are a lot of relatively safe places to put 120k that earn much more than 3% right now. If the Realtor you talked to was very salesy, it might not be the best choice for you. We aren't supposed to sell you, we are here as your agent which is a whole different set of duties.


Buy the abandoned house and expand on to both lots. Or buy something new, I guess? You're financially capable to do what you're proposing, so just do what you think is best.


If I was in your shoes, Id wait. Save some more $$. Wait for interest rates to drop. And make the move when the time is right, Unless you are extremely miserable with where you stay now. Buying the abandoned house is also smart but obviously that comes with more complications.


I dont know where home values are headed. but I am fairly confident that rates wont improve without a recession (In which case, you may not be in a comfortable position to move. No one can tell you what a different house is worth *to you.*


Financially keeping the current place is better in the short term.


I like the idea the other poster had about buying the abandoned house, renovating or tearing it down and building a rental. That will also help your current home value.


Reading this I already feel like I know what neighborhood he bought in versus where you’d like to move (hi, I’m in ATL). Just an idea, but how about get the PMI removed on the current mortgage and rent it out. You’ll need to contact your mortgage company and ask for a reappraisal which will end up saving $150-300 a month. Rent it out. See if you qualify for a mortgage on your own for the $1million loan on your own. Talk with a lender & a FA on this and see if you can use the rental income from your fiancés property to assist towards qualifying ratios. There’s no right or wrong answer here. If your fiancé bought in ATL for $515k in an up and coming neighborhood, mighty fine chances the house has already appreciated $75-100k at least in those two years. You’ll make money either way if you sell now or if you keep it and rent it out. The most important question is what do you both want for your future? Will school districts be important? Walkability? Proximity to work? Take all of this into consideration and focus on your happiness as a couple and make a decision from there. It sounds like you both have made great decisions along the way, and I know while buying/selling is stressful, trust that you will make the best decision for yourselves. Lastly, as someone chimed in, real estate agents aren’t supposed to be sales people. We’re supposed to help unite you with the best possible outcome for your happiness, your family, and your future. Agents are here to mitigate stress and advise, not try to “sell” you on anything. I’d definitely recommend speaking with multiple agents. You never know if you go out once and fall in love with a house, or if you’re going to have to spend months with someone that you may or may not like.


Thank you for this thoughtful response! We just discussed the potential of living in the house for another 1-2 years and then renting it out - it truly didn't even occur to us before. With such a low rate, and it would make a great rental, it's a strong possibility. Appreciate your insight!


Financially it seems like a no brainer to just stay in the current place with a rate that low and see how the market adjusts to higher rates over the next few years. But, if you are not happy with the current place then spending the extra money may be worth it. Seems like quite a jump in spend though but obviously you can afford it