If you’re one of the many homeowners who locked in a 3% (or even lower) mortgage rate over the past few years, the thought of moving right now may seem financially counterintuitive. After all, today’s mortgage rates are higher, and giving up that ultra-low rate might feel like giving up free money.
But here’s the reality: life doesn’t stand still, and there are valid — and even smart — reasons people are choosing to move, despite their current low-rate mortgage.
Let’s take a look at some of the top reasons it still makes sense to make a move in today’s market.
1. Your Needs Have Changed
That 3% rate may have made your current home a great deal on paper, but does it still suit your lifestyle? Maybe your family has grown, or you’re now working remotely and need a home office. Maybe you’re now empty-nesting and want to downsize. A low rate doesn’t add square footage, eliminate stairs, or improve your commute.
If your current home no longer fits your life, it might be time to prioritize comfort, functionality, or location over the interest rate.
2. Equity Can Help You Offset Today’s Rates
Thanks to rising home values over the past few years, many homeowners have built substantial equity. That equity can be used as a large down payment on your next home — potentially reducing the amount you need to borrow and lessening the impact of a higher interest rate.
In some cases, homeowners are even using their equity to buy their next home in cash or close to it, eliminating the rate issue altogether.
3. Life Events Don’t Wait for Interest Rates
Big milestones like marriage, divorce, retirement, a new job, or welcoming a child often trigger the need to move. These life changes don’t wait for mortgage rates to hit a certain number. If your situation requires a move, it’s wise to base your decision on life needs, not just financial comparisons.
4. You Can Always Refinance Later
While today’s rates may not match your current one, remember: you’re not stuck forever. If you buy now and rates drop in the future, you may have the option to refinance into a lower rate — and you’ll already be in the home that better suits your needs.
5. You Might Be Surprised by What You Can Afford
With more inventory and less competition than in recent years, buyers today have more negotiating power. That could mean price reductions, seller concessions, or incentives like rate buydowns — all of which can make a move more affordable than you think.
Bottom Line
Yes, giving up a 3% mortgage rate is a big decision — but it shouldn’t be the only factor driving whether or not you move. If your current home no longer fits, if life circumstances have changed, or if you’re ready for something new, it might be time to make the move.
Let’s connect to evaluate your options. We’ll run the numbers and help you make the most informed decision — one that supports both your financial future and your lifestyle today.
Providing guidance and assisting motivated buyers, sellers, tenants, landlords, and investors in marketing and purchasing property for the right price under the best terms. Determining clients’ needs and financial ability to purchase the best home for them. Call me today and let me help you find a home that can change your life!