Interest Rates Over Grandkids
Before I begin, it's worth noting that the woman referenced in this post gave me permission to share this story. I would never intentionally hurt or demean anyone. She hopes it will serve as a good example for someone else in similar shoes.
About a year ago, a woman contacted me. I had never met her before, but she is an avid Meaning Over Money podcast listener. She said she felt like she already knew me, yet it was still awkward for her to reach out to a complete stranger for advice.
Here was her situation. She and her husband live across the country from their daughter and grandkids. After much discussion, everyone (her, her husband, her daughter, and her son-in-law) agreed they wanted the grandparents to relocate to be closer to the grandkids. This detail is important; everyone wanted this outcome. However, more than two years after making this decision, they still hadn't made the move. Why? "We can't afford it."
"Why can't you afford it?" I asked.
They have a 2.9% interest rate on their house, and if they sold it to move closer to family, they would lose this favorable mortgage. Based on the information she provided, this mortgage equates to approximately $1,500/month in value (compared to a market mortgage). However, there's another pertinent fact that needs to be mentioned: They CAN afford it. Their finances are in good shape. They've done well. They are well positioned.
When I asked her to clarify, she responded, "Well, I suppose we can afford it, but it would be a bad decision to sell. It would be stupid to walk away from that rate."
I wasn't trying to be a jerk, but I asked her if she could put a value on her grandkids. "Of course not! Family is priceless!"
"From what you're sharing, it sounds like your family is worth less than $1,500/month to you."
She stared at me for a while, contemplating what I had just insinuated. She IS putting a price tag on her family, and right now, they are less valuable than walking away from a $1,500/month mortgage benefit. "Wouldn't it be a bad financial decision?" she asked.
The moment we make all our decisions around money is the moment we've turned ourselves into robots. Sometimes, the best financial decision isn't the best decision, and sometimes the best decision isn't the best financial decision. That's why we call it Meaning Over Money. Meaning! Always meaning!
Nearly a year has passed since that original conversation, and she recently reached out. While it took another year of contemplation, she and her husband decided to sell the house (abandoning their attractive mortgage) and move closer to their daughter and grandkids. She regrets it took this long to make the right decision, but I reminded her of how many beautiful years they have ahead of them.
Please don't let black-and-white numbers come between you and the meaning you are called to pursue. Meaning and money oftentimes overlap, but when they don't, we have to choose meaning.
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