I’m going to add “6%” transaction costs as another reason to stay in the home.
A refi sure gives you alot here. The choice is – go to a mortgage broker and sign on the dotted line, or incur the cost and hassle of buying, selling, and moving. The refi gives you instant relief and a nicer place to live. I also think that living in a smaller house can make you feel cramped and be more stressed.
I think a refi is more in-line with following the “take care of yourself” and “lower stress” path. Few things are more stressful and less fun than moving.
So you have to work a bit longer to pay off the longer mortgage. If you make your work lifeeasier, and possibly even enjoyable, then working for another 10 years may not be so bad.
This is a conclusion I have come to recently. I could work my ass off to reitre earlier, but I kind of enjoy what I do and I only work 40 hours a week. 10 more years of it would be – not so bad. If you can get your work life to a happy place, you may feel the same.
