Question
I locked in a 2.75% mortgage, yet upgrading now forces a steep rate increase and much higher payments. Should I rent out my current home—thus sacrificing available equity—or defer the move?
i think stick with the 2.75. renting out your place preserves that low rate while you wait for the right time to upgrade. bloating payments now might cost more down the line.
Having experienced similar mortgage challenges, I opted to rent out my current property rather than taking on a new loan at a higher rate. Although managing a rental property requires additional effort, holding onto a low fixed rate can provide long-term financial benefits. It is crucial to consider the risks of being a landlord against the potential cost of higher payments on a new mortgage. Reviewing your cash flow, tenant management, and market conditions can help clarify whether renting out or deferring is the more advantageous path.