My wife and I are at a bit of a crossroads and feel like a decision will need to be made soon. We are a family of four living in a ~1,200 sq. ft house in an excellent suburb just 15 min north of downtown Atlanta. We currently see 3 options in front of us that each have their pros and cons.
Refinance and just stick it out in our little house. We continue to work from home part time (company office 30 min away), while sharing my home office with the our youngest’s nursery. Currently owe $280,000 with an estimated 70% LTV based on comparable home values around $420,000. Could refi to a 2.99% rate (from 3.75%) and drop PMI, saving about $280/month. Break even on closing costs in about 11 months. Would stay until kids are out of elementary school (~8 years)
Sell and move further north into a ~3,000 sq. ft house. Range of homes we are looking at $380-410,000. Would use equity from current house on 20% downpayment. Monthly payment would likely go up to around $2,000 a month which would give us less flexibility in saving/investing. Would also be further away from my where most of my time is spent for work (Metro Atlanta, Company’s office would be about 1.5 hours away.
Spoke to a local home builder today about possibly adding on to our current home. We would build up and add 2 bedrooms, a bathroom, and a flex space. We estimate this would cost between $200,000 and $250,000 but would take our home value from $425,000 to $750,000. We would still have about 70% LTV, but I imagine monthly payment would be north of $2,500.