If you’re like many homeowners today, you’re probably thinking: “I’d love a bigger home, but I don’t want to give up my 3% mortgage rate.” This is one of the most common concerns for move-up buyers—and for good reason. But the good news is: you have options that can make upsizing possible without losing your low interest rate.

Option 1: Keep Your Current Home as a Rental

One smart strategy is to keep your current home as a rental property. Lenders allow you to use 75% of the market rent to help offset the mortgage payment on your existing home. This boosts your ability to qualify for the next property without selling first. Plus, your low-interest mortgage means stronger cash flow from rental income, potentially covering the old mortgage entirely—or even generating a profit.

Option 2: Sell Now, Recast Later

If you plan to sell your current home, you can still buy your new home first and qualify with both mortgages temporarily. After you sell, you can apply your proceeds to the new mortgage and recast the loan—a process that lowers your monthly payment by recalculating the balance without requiring a costly refinance. Recasting fees are usually minimal compared to refinancing, and this option can reduce your payment by hundreds or even thousands of dollars per month, making your new home much more affordable long-term.

Option 3: Bridge Loans or HELOCs

If you need access to funds for a down payment before selling, a HELOC (Home Equity Line of Credit) or a bridge loan may help. However, these come with higher rates and fees, so it’s essential to compare costs carefully and explore other options first.

The Bottom Line

Every move in real estate counts. Whether you rent, sell, or tap your home’s equity, the key is to plan early and explore every scenario with a trusted mortgage expert and real estate advisor.

Want to find out what’s possible for you? Reach out—we’re here to guide you toward a smart, winning real estate move!