For homeowners who bought when mortgage rates were less than 3 %, today’s market is paralyzed. Some say, “2.5 % is mainly free money”

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When the mortgage rates decreased to less than 3 % during the epidemic, millions of home owners were imprisoned in the deals they now call once in a lifetime. But as rates now Hover above 6 %Many of these owners themselves say they feel stumbled. It has become an upgrade, increased size, or transportation financially, even for families who want more space.

Redit community R/Middleclassfinance She recently ignited personal stories from homeowners who bought or re -financing during the era of superior average. A person best summarized the feelings: “I don’t think I am selling at all. If I bought another house, I will try to keep this rental. 2.5 % is essentially free money.”

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Another person shared, “It will be difficult to overcome $ 1,136 per month. 2.75 %/30yr. He bought in 2020. Maybe here forever. “

Many agreed. Low interest rate is not cheap; It has become a golden hand. “I have 3.5 % with 10 % on a 20 -year loan. I will not go anywhere,” one of the commentators wrote. “Not because of interest rates, but because I do not need to upgrade or a larger house. I am happy in my little home with my family and our pets.”

Another said, “3.25 %. I really don’t want to move again until they need to take me to live with the help of (or one community 55+) because I cannot deal with the stairs anymore.”

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Some commentators have moved anyway, but it was unprecedented for purely financial reasons. A few educational areas were cited better, mental health, or simply outperformed the beginning house. One family left a rate of 2.25 % for 7 % interest in the suburbs. “We now have two children and a dog that needs a square,” they wrote. “I will choose this house and our interest in 7 % for our current life a thousand times.”

Others have reported that not every decision about the final result. “Was it a smart financial decision? Certainly not,” one of the father admitted after he approached his wife’s family and better schools. “But my wife is Asaad, and my daughter goes to better schools, and we have much more support than we got.”

However, the bars are real. “He had 3.1 %, it was purchased from 6.2 %. I hated the place where I lived and it made me depressed. I chose happiness at the interest rate and this was the best decision,” said one of the commentators who moved.

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Many who do not want to give up their low rate choose to expand instead. Whether it ends with the lower floors, or adding the second bathrooms or built additives, the renewal is the strategy. One of the posters said: “I added 1000 square feet with the money I provided from getting a cheap mortgage.” “It was cheaper than buying something else.”

A growing group says they do not move – at all. One of them wrote: “I bought the ideal house and they will take me out from here in a box.” Another added, “My goal is to pay this place and then retire.”

For many, all of this is due to the financial peace of mind. One of the owner of the house wrote: “You will advance by 2.5 % of the dead cold hands,” said one of the home owner. “I can carry 8x home, but I don’t need this kind of tension in my life.”

Even if the rates return to a 5 % range, many homeowners say this may not be enough to justify this step. Financial friction is very simply high.

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This article For homeowners who bought when mortgage rates were less than 3 %, today’s market is paralyzed. Some say, “2.5 % is mainly free money” Originally Benzinga.com