Stay for low rate or move for schools and functionality?
We built our home during the first few months of the pandemic and currently have a 2.75% interest rate and significant equity.
Our current neighborhood has become less and less diverse since we built. We are considering building in a new development in a more established part of the city that would allow our child to attend a school that is significantly more culturally and socio-economically diverse than our neighborhood school—something very important to us. We could opt them into the school, but we would need to apply for a waiver every year and it could be denied based on growth in enrollment.
A bonus of moving is that we would be building a house that fits our life better than our current home. When we built, we thought we would need the space we currently have, but we have found that 3500 sq ft is too much for us, and we would be downsizing to about 2700.
We know we can afford the increased payment, but one of the fears we have is that we will regret losing some of the financial flexibility we currently have.
For those who willingly left a low rate for a house that fits you better—whether it be size, location, etc—do you wish you had stayed and maintained more financial flexibility? Or was the move worth it?
I feel like the move would ultimately be worth it, but my spouse is more hesitant.
Edited to add: our child isn’t white. We want them to attend a school where they will have racial mirrors both in terms of peers and teachers/staff. Growth patterns in our city and the construction of new schools over the last six years changed the demographic make-up over our neighborhood schools. Other than diversity, schools in the city are all excellent academically.