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Swapping homes

Hello, here’s the rundown! We currently live in a desirable neighborhood where home values, like most of the country, have sky-rocketed over the last couple of years. We bought back in late 2020 and were able to secure a low rate, 2.6%.

We bought the house knowing we wanted to be in this neighborhood- great schools, awesome location, etc.. Unfortunately we put more of an emphasis on getting into the neighborhood quickly and with a good rate, than we did finding the home we can see ourselves in for the next 20 years. We’re looking to increase our sq/ft as my wife and I both work from home and have a toddler, with another on the way. We have a rear entry garage so there’s no real privacy with streets on either side of our hose and yard, something that I regret for having a safe outdoor space for our dogs and kids.

One of our neighbors with a larger home and private backyard that would be perfect, has mentioned he’s looking to downsize having recently become an empty nester. He mentioned that he re-fi’d back in 2021 to a low 3’s % rate.

Given the current state of interest rates, we’ve flirted with the idea of how ideal it would be to potentially keeping our current rates and swap homes (maybe mortgages?). The other homeowner wants to stay in our neighborhood so this would allow both of us to get what we’re looking for. The other home is worth more so we’d have to either bring cash for the difference or figure out a way to roll that into a new loan if possible.

I haven’t had any luck finding information online for this exact scenario. Most articles discuss investment property swaps or essentially buying/selling homes at the same time with the other homeowner- which we’re trying to avoid, in hopes of keeping our respective interest rates.

Wanted to see if anyone had any insight into if this is possible? Thanks in advance!

submitted by /u/comett094
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source https://www.reddit.com/r/RealEstate/comments/13pp6qt/swapping_homes/

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