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[quote=Anonymous][quote=Anonymous]We love our neighbors and neighborhood. We have been in the same house for 10 years and have out grown our house. We have 3 young kids in 2600 sq ft 4 bedroom 2.5 bath with 2 WFH parents.

Would you do a major $200K renovation on house or sell and buy a larger house?

A new house recently came up on the market that is 4200 sq ft 4 bedroom 4 bath for $1 million.

We could probably get $950,000 for our existing house (bought it for $700,000) and have about $450,000 on the mortgage plus a $100,000 HELOC to pay off.

We have a very low interest rate which makes me nervous to even look at a new house. But we really need more space. What would you do? [/quote]

You're 10 years into your mortgage which means you've hit the point where your monthly is going more towards your balance and less towards interest. 
You have 2600 sqft, 4 beds, 3 baths. 
You have an interest rate that is likely 50%-60% lower than any rate you could get today 
If you sell you will have to pay off that $100K HELOC, so you actually owe $550K not $450K
You admitted that the home you're interested in is likely under priced, and there's no guarantee you would get the house.

I don't get why you're even debating selling.  Stay where you are, stick it out and try to make it work without a full renovation.  Your home is not tiny! And you love the neighborhood. [/quote]

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