When It’s Worth Giving Up Your 3% Rate And How To Know If It’s You

You locked in a great rate — maybe even one of those “golden” 2–3% mortgages.
But your life has changed. Maybe your family has grown, you’re relocating for work, or you’re ready for a lifestyle shift. The question isn’t “Should I give up my low rate?” — it’s “Does staying put still make sense for my life?”

Here’s how smart homeowners are thinking through the decision:

Look beyond the rate - focus on the total cost of living

  • Add up your monthly savings, taxes, utilities, maintenance, and commute costs.

  • Sometimes, a newer or better-located home offsets a higher rate with lower total expenses.

Consider your equity as a tool, not just a number

  • Home values have risen — that equity is working capital.

  • Using a portion of your equity for a new home or investment property can help you build wealth faster than sitting still.

Run the “blended rate” math

  • Don’t compare your old rate to the new one in isolation.

  • Look at your overall average borrowing cost if you keep some equity invested and finance the rest — it may be lower than you expect.

  • A trusted lender can model this for you so you can see what this looks like

Factor in quality of life

  • Is your current home limiting your lifestyle, location, or comfort?

  • Sometimes the emotional and lifestyle return outweighs the financial difference.

  • Remember: time is a non-renewable asset.

Plan for what comes next

  • Remember that rates move in cycles — refinancing later is always an option.

  • What matters most is getting into the right home for your next chapter, not waiting for the perfect rate.

Keeping your 3% rate feels smart — but it’s not always the most strategic choice. If your home no longer fits your life, explore your numbers before deciding.

At Evolution Home Loans, we’ll walk you through personalized visuals that make the numbers simple — helping you see how your next move fits your life and long-term goals.

Previous
Previous

House Hacking in Bremerton, How a Group of Friends Bought Their First Home with An FHA Loan

Next
Next

Waiting for Rates to Drop? Here’s Why It Might Cost You More