Three families gave up 3% mortgage rates. Here’s what they got in return

Your mortgage interest rate has a big impact on what you actually pay each month, so it’s an important number.

But there’s also real life to think about. Is the house big enough? Is it in the right location? Will that quirky bedroom layout or wood wall paneling drive you crazy? Do you have enough room for the kids or in-laws who might join the flock someday?

Mortgage rates have been stuck above 6% for almost four years, which complicates the math for homebuyers looking to make moves in this market.

After all, new jobs, new babies and school decisions don’t wait for mortgage rates to drop or the housing market to get easier. Over the last year, these three families left behind mortgage rates around 3% to buy new homes with mortgage rates above 6%.

For them, the higher interest rates were a small price to pay for the better lives their new homes unlocked.

Buying a house for the commute

Rayne and Bob DeVivo decided they were spending too much time on the road.

They lived in the same four-bedroom rural Illinois house they bought more than two decades ago. After refinancing their mortgage twice, they had a 2.88% interest rate and $1,200 monthly payment.

But in March 2025, Rayne saw a Facebook post from a local family looking to buy. She jumped at the chance to sell. Their sons’ high school in Bloomington was 25 miles away, and early morning classes and afterschool extracurriculars had left Rayne and Bob in an endless commute of drop-offs, pick-ups and getting to their own jobs.

“Seven days a week, we’re driving to town for school,” Rayne says. “I was filling my minivan tank, at the worst, three times a week.”

The DeVivos decided to sell, and their Bloomington house search was on.

A month later, they made a $300,000 offer on a 1970s home in the city with a smaller yard but similar square footage. And they traded their coveted low rate for a 6.12% rate on a 15-year mortgage with the same credit union as before. Their salaries — hers as a county prosecutor and Bob’s as an insurance data professional — help them afford the new mortgage.

“The new payment is double what we paid for the other house,” Rayne admits.

But the high school is 12 minutes away. Friends’ houses, part-time jobs and the YMCA are within walking distance. And they only fill up the gas tank every three weeks. “The quality of life is so much better,” Rayne says. “For [my sons]’ mental health and ours, moving into town was a huge bonus.”

Buying a house to put down roots

Aarani and Edmund Montanari had a New England move on their minds. Edmund had been working East Coast hours remotely on the West Coast and wanted a better schedule. Plus, they wanted to be closer to his parents.

And with their children’s elementary education about to start, it was “now or never because of the school districts,” Aarani explains.

They’re happy about the move they made, but it took a couple stepping stones and an interest rate jump to get there.

They sold their 3%-rate condominium in Tustin, Calif., in fall 2025, and set their sights on Arlington, Mass. right before the school year began.

To buy time while house hunting, the family first moved into her parents’ home nearby in California, and then into his parents’ home in Massachusetts. But they soon decided to speed up the homebuying process, as living with extended family was disruptive to their kids’ routine. “We were really desperate to find our own space again,” Aarani says.

Going months without having a space of our own pushed us to just pull the trigger and buy a home, instead of waiting out the market.

— Aarani Montanari

It wasn’t the best time to buy in the New England market. They considered renting temporarily, but there weren’t many options for three bedrooms and a dog. And the math didn’t add up — they’d pay the same amount to rent as they would with a mortgage above 6%.

The couple began looking at homes priced $200,000 below their budget so they could outbid competitors. Aarani says that, rather than shopping for the lowest rate, the two used their real estate agent’s recommended lender. They put offers on several houses and appreciated the lender’s quick responses and preapprovals.

In November 2025, the Montanaris bought a house at a 5.88% rate. “It was so jarring for us to come here and see that the rates were 6%,” she says. “It’s still pretty expensive here.”

Still, Aarani sees the bright side to the unavoidable extra cost: this could be their family’s forever home. It’s in a good school district, right next to a park and big enough for their family to grow. “We do get a lot more bang for our buck in terms of price per square footage,” she adds.

Buying a house for the military

For families like Abby and Joe Groeschel, the housing market doesn’t dictate their timeline. The military and a permanent change of station (PCS) does.

The couple is about to buy their third home in a decade, and they’re well aware of the pain that comes with swapping a rate near 3% for one over 6%.

They had to ditch the 3.13% rate they got in 2021 when they moved away from a 1,300-square-foot home in Colorado Springs, Colo., in April 2023. Joe was reassigned to Phenix City, Ala., where they bought a 1,600-square-foot home with a mortgage carrying a 6.3% rate.

In that case, a lower purchase price combined with a higher rate kept their mortgage payment about the same for both homes. The Groeschels shopped for lenders for their first home purchase. They’ve kept tabs on competitor rates since but have stayed loyal to the original lender, in part thanks to their punctual closings and nationwide certifications.

The family’s next stop will be in Kansas, where they’re aiming to close on a house next month with a 6.25% mortgage rate. Abby says the experience in a home goes beyond what you pay. “We are a military family, so we move where my husband is needed,” she explains. “This was my husband’s dream…You just have to roll with it.” In the Colorado Springs house, they loved seeing Pikes Peak from their window. In the Phenix City house, they brought their new baby home and said goodbye to two senior dogs.

“Moving into new places is exciting, to find new restaurants and find new places to go and explore,” Abby says. “You have to look at that part.”

What it means for you

If you’re ready to buy a house but feel like you’re in a standoff with the market, there might be a happy medium. Even in a pricier borrowing market, comparing lenders, improving your credit score and negotiating are effective ways to get a better mortgage rate. And a small rate difference goes a long way.

Here’s an example. The average American home loan origination is $373,000 repaid over a 30-year, fixed-rate term, according to mid-2025 U.S. Federal Housing data. Using Bankrate’s mortgage calculator shows landing a rate lower than the national average could save you more than $47,000 in total interest, or $131 a month.

And paying less for your home loan can help pave the way toward your next life milestone.