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

If you’re a homeowner in Ann Arbor with a low mortgage rate, you might feel a bit stuck these days. You may have considered making a move—whether that's finding a larger space, relocating to a different neighborhood, or finally discovering a home that feels just right. But then the reality of today’s interest rates hits, and suddenly, that idea 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 feels like a great deal—even if their current home no longer meets their needs.

This phenomenon is known as the “lock-in effect,” and it’s a significant factor in today’s housing market. But just because you feel stuck doesn’t mean you don’t have options. If you’re unsure whether to stay in your current home or make a move, consider these three questions to help you find clarity and make a decision you can 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 mortgage rate, is your home still supporting your daily life?

Perhaps what once felt spacious now seems cramped. Or maybe 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 have welcomed a new family member. Or perhaps you’ve simply outgrown your space emotionally. What used to be your dream home now feels like a never-ending to-do list.

It’s easy to push those feelings aside and focus solely on your current mortgage rate. But when your home no longer fits your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but also emotionally, mentally, and physically. 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?

There’s no denying that today’s interest rates are higher than they were a few years ago. However, that doesn’t automatically mean moving isn’t a financially viable option. What’s important is how the overall picture looks for you.

Many homeowners today are sitting on significant levels of 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 substantial rise from $182,000 at the beginning of the pandemic, based on CoreLogic’s Homeowner Equity Insights report.

This means many homeowners here have built up considerable equity that could serve as a down payment on a new home. This equity could reduce the amount you need to borrow, lower your monthly payment, or help you avoid private mortgage insurance.

On the flip side, consider what lifestyle benefits a move could bring. Maybe it would bring you closer to family, give your kids access to better schools, or provide the home office or outdoor space you’ve been dreaming of. Perhaps it means downsizing and having more cash in your pocket each month. Or finally settling in a neighborhood where you feel more at home.

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

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 people, that’s the best choice. But it should be a conscious decision, not a default option.

Ask yourself: If I choose to stay for the next three to five years, what changes or investments would I need to make to ensure this home truly works for me? Would I renovate the kitchen that’s no longer functional? Convert the spare room into a proper office? Redesign the backyard so it actually gets used?

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

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

Final Thoughts

Feeling “stuck” is frustrating, but the good news is, you’re not as trapped as you might think. You’re just facing a decision that deserves careful consideration.

You don’t need to have all the answers right now. But by asking the right questions—about your lifestyle, your goals, and your finances—you can gain 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 your future.

If you’re uncertain about what to do next, let’s talk it through. We’ll help you weigh the pros and cons, look at real numbers, and explore what’s possible. Our goal is to provide the clarity and confidence you need to move forward in the direction that feels right for you.