[USER]

Hello – Looking for advice. We are homeowners with a 4% interest rate and are looking at purchasing a new home that would have a much higher rate (still looking at details and options for seller rate buydown possibly a 3/2/1 or seller credit).

We don’t need a new home as the current home fits our needs, we just want the new home (bigger yard, more space for entertaining, in a nicer neighborhood). Our current mortgage payment would be almost doubling which we can afford but would change our FIRE date.

Are we being selfish to want something better and spend more money on the home and interest? If we stay, we can pay off the home in 10 years.

We currently have 2 kids in daycare which would accelerate the home pay off on our current home once their out and for the new home we couldn’t start to pay any additional on the mortgage until the kids are out of daycare in 5ish years.

[Dan]

I am very glad we never upgraded. We are now mid-40s, home paid for and basically retired thanks to keeping things simple and low cost.

Most of my friends upgraded, have new cars etc, but they are all still going to work until 65-70. If you arent sure which you want more, just wait. Also, you probably wont do as much entertaining as you think.

The exception isnif you are really “house people”, where your home is your focus and your hobby.

In that case it may be worth it.

[Davis]

It’s completely natural to want something better and to have a home that suits your needs and desires. Wanting a bigger yard, more space for entertaining, and a nicer neighborhood is not selfish at all!

However, it’s important to weigh the financial implications.

Doubling your mortgage payment and changing your FIRE date is a significant decision. Take some time to consider your long-term goals and priorities.

If you can comfortably afford the new home and are willing to adjust your FIRE date, then go for it! Just make sure it aligns with your overall financial plan.

Don’t miss: I want to spend initial 8-10 years with my child, wife, my dog

[Kym]

Does this count as lifestyle creep?

Your mortgage will double
Your Apr will probably almost double
Taxes are higher
Utility bills will be higher
Insurance will be more
More furniture
More to clean
More to break

No one can answer this but you.

Financially should you? Probably not.

[KC Kline]

Situations like this are not right vs wrong. Life is about trade offs. Just understand fully what you will be trading in house vs freedom.

Personally, freedom of options are what I value most. You couldn’t commit me to the fanciest house in town to kick my FIRE date decade(s) down the road. No way.

[Steven]

You think that when the kids leave daycare there’s going to be a ton of extra money but something comes in to fill the space usually. Sports fees, dance lessons, after school care, tutors, martial arts classes, etc.

[Devon]

It’s not selfish, but it’s taking from your future selves to hopefully make your present more comfortable. Only you can decide if that’s worth it.

[Lisa]

Unpopular opinion: go for the new house. Historically, it will go up in value. People told me I was crazy for buying my property.

It’s doubled in value and I love where I live.

Outside property to enjoy is important for children.

Explore these too: How do I decide what to spend on a car?

[Kathryn]

Kids will be grown and gone before you know it. I’d stay in your current home. I would not nearly double the mortgage. Paying off your home in 10 years is ideal.

No mortgage before they go to college would be great!

[Penh]

Be careful with lifestyle creep. Also when kids get older they get more expensive. There’s soccer and dance and gymnastics or whatever activities they want to do. You mentioned you don’t need it. I would stay on your current home and pay it off in 10.

Also if a major expense hits you in the future or you lose your job your expenses will be easy to maintain.

[Kelsey]

I fail to see how it’s selfish (you may want to dig into why that came to your mind), but only you can answer is it worth it.

Some questions to think about as you make your decision..

-Does a nicer neighborhood mean you no longer plan to send the kids to private school and instead they go to public school?

-Do you like your current neighborhood?

-What’s the barrier to entertaining more.. is it really the house? Or is it something else? Lots of people can fit into a house.

[Amanda]

This is an “it depends” answer for me. I don’t think it should be a retire early over all else mentality. If the new house will bring you a lot more joy and quality time with those you love it might be worth it.

But if you are buying to keep up appearances then it would be a no

[Dennis]

We were looking at the same situation recently and decided to stay put. The huge increase in payments wouldn’t get us much more house. Instead we are now focusing to do some remodeling in our current home.

Big deck out back better for using outdoor space and we are cutting a utility room in the basement in half to make a play room for the kids. Making our small house feel bigger but preventing lifestyle creep.

Think about your current property and look for opportunities.

[Author]

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