Is Giving Up A 2.5% 15-Year Mortgage For A 6% 30-Year Mortgage To Move Closer To Best Friends With Kids The Same Age ‘Crazy?’


A young family with three toddlers wants to make the leap from financial freedom to a much bigger house and mortgage, just to live a few doors down from their best friends.

They have only $163,000 left on their current 15-year mortgage at 2.5%, and in eight years, or even earlier, the house would be completely paid off. But the temptation of more space, a bigger yard and playmates for their kids had them considering an $800,000 offer on a new place with a 6% interest rate.

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The mom, a nurse with a variable income up to $30,000, said her husband earns $250,000. They could afford the $4,600 monthly payment, including taxes and insurance, with $200,000 down. “Are we crazy giving up a 2.3% interest?!” she asked on Reddit’s r/Mortgages forum recently.

The top response summed up the dilemma well: “You’re not crazy, but you are trading a unicorn rate for lifestyle,” one commenter wrote. “Just sanity-check that $4.6k payment still feels comfy on one income if life throws curveballs.”

Many emphasized that paying off a home in less than a decade is a dream scenario, especially in today’s economy. “It’s not just the mortgage that increases in cost,” another said. “The taxes will be higher, insurance, maintenance, utilities, etc.”

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Several people warned against making a huge financial move based on living near friends. “Do you still love the house if she isn’t there or if you have a falling out?” one person asked. Another commenter shared that they bought next to their best friend but eventually had a falling out. “We ended up selling and moving,” they said. “It’s super emotional and almost ‘dream-like’ when things are good, but it is awkward and uncomfortable when it’s not.”

The original poster admitted the friendship was a major draw, but even she acknowledged later: “This may have been my push,” after reading one parent’s reminder that kids just care if “their belly is full, their favorite jammies are on, and mom and dad are around to play.”

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For anyone facing a similar decision, it’s worth talking it over with a professional. WiserAdvisor offers a free tool that matches you with a vetted financial advisor who fits your needs. There’s no pressure to hire, and it can be a helpful step when weighing big life decisions like this, especially for households earning $100,000 or more.



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