Stuck Between Moving and Staying? These 3 Questions Can Help You Decide

If you’re a homeowner in Hudson & Monmouth Counties with a low mortgage rate, you might be feeling a bit stuck lately. Perhaps you’ve considered making a move—whether that means finding a larger space, relocating to a different area, or finally discovering a home that feels just right. But then the reality of today’s interest rates hits, and the idea quickly gets pushed aside.

This scenario is playing out for many homeowners across the country. Millions locked in at historically low rates in 2020 or 2021 are now hesitant to let go of what seems like an unbeatable deal—even if their current home no longer fits their lifestyle.

This phenomenon is known as the “lock-in effect,” and it’s a significant factor in today’s real estate decisions. However, it doesn’t mean you’re out of options. If you’ve been on the fence, unsure whether to stay or go, there are three questions that can help you gain clarity and make a decision you feel good about.

Is your current home still working for your life—or just your loan?

This is a crucial question to consider. When you look beyond the interest rate and the financial spreadsheets, does your home still support your daily life?

Maybe what once felt spacious now feels cramped. Or perhaps your home feels too large and quiet since the kids moved out. Your needs might have changed—maybe you’re working from home more often, caring for aging parents, or welcoming a new family member. Or perhaps you’ve simply outgrown the space emotionally. What used to feel like a dream home may now feel more like a never-ending to-do list.

It’s easy to put those feelings aside and focus solely on your current rate. But when your home no longer aligns with your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but emotionally and mentally as well. The right home doesn’t have to be perfect, but it should make your daily life easier, not harder.

What would a move really cost you—and what might it make possible?

Today’s interest rates are higher than they were a few years ago, but that doesn’t automatically mean moving isn’t financially feasible. What’s important is how the complete picture looks for you.

Many homeowners in our area are sitting on substantial equity. As of early 2024, the average mortgage-holding homeowner in the U.S. holds approximately $299,000 in equity, according to ICE’s Mortgage Monitor report. That’s an increase from $274,000 at the end of 2022 and a significant jump from $182,000 at the beginning of the pandemic, based on CoreLogic’s Homeowner Equity Insights report.

This means many homeowners in our region have built considerable equity, which could serve as your down payment on a new home. It could lower the amount you need to borrow, reduce your monthly payments, or even help you avoid private mortgage insurance.

On the flip side, consider the lifestyle benefits a move could provide. Perhaps it would bring you closer to family, give your kids access to better schools, or provide that home office or outdoor space you’ve been dreaming of. Maybe downsizing could free up some cash each month or allow you to settle in a neighborhood where you feel more at home.

Moving isn’t just a financial decision; it’s also about your quality of life. When you weigh both the gains and the costs, you might find that the numbers aren’t as one-sided as they initially seem.

If you stay, are you staying intentionally—or just avoiding a hard choice?

It’s perfectly fine to stay where you are. In fact, for some, that’s the right choice. But it’s essential that this decision is intentional, not just a default option.

Ask yourself: If I choose to stay for the next three to five years, what would I need to change or invest in to make this home truly work for me? Would I renovate that outdated kitchen? Convert the spare room into a proper office? Redesign the backyard so it actually gets used?

Staying doesn’t have to mean settling. Sometimes, finding peace with your current home involves making a plan to enhance it—whether through minor updates, strategic renovations, or simply adjusting how you use your space.

However, staying without a plan can lead to years of frustration. Often, those quiet compromises can add up to something more costly than moving would have been.

Final Thoughts

Feeling “stuck” can be frustrating. But the good news is, you’re not as trapped as you might think. You’re simply facing a decision that deserves thoughtful consideration.

You don’t need to have all the answers right now. But asking the right questions—about your lifestyle, your goals, and your finances—can lead you to greater clarity. Whether you decide to stay or go, the aim isn’t to time the market perfectly. It’s to make a choice that supports your life and future.

If you’re uncertain about what to do next, let’s chat. We can help you weigh the pros and cons, look at the real numbers, and explore your options. This isn’t about pressuring you into a sale; it’s about giving you the clarity and confidence to move forward in the direction that feels right for you.