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

If you’re a homeowner in Pensacola with a low mortgage rate, you might be feeling a bit stuck lately. Perhaps you’ve considered moving—whether it’s for more space, a different neighborhood, or just a home that feels more like you. 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 seems like a great deal—even if their current home no longer fits their lifestyle.

This phenomenon is often referred to as the “lock-in effect,” and it can be quite powerful. However, it doesn’t mean you’re out of options. If you’ve been on the fence, unsure whether to stay or go, consider these three questions to help you gain clarity and make a confident decision.

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

This is a crucial starting point. When you look beyond the mortgage rate and the numbers, 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 may have changed—whether you’re working from home more, caring for aging parents, or welcoming a new family member. It’s also possible you’ve simply outgrown the space emotionally. What was once your dream home might now feel like a never-ending to-do list.

It’s easy to push 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 also emotionally and physically. The right home doesn’t have to be perfect, but it should enhance your daily life, not complicate it.

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

There’s no denying that interest rates are higher than they were a few years ago. However, that doesn’t automatically mean moving isn’t financially feasible. What’s important is how the entire 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.

In Pensacola, the real estate market has seen a steady increase in home values, which means many homeowners are also sitting on considerable equity. This equity could serve as your down payment for a new home, reduce the amount you need to borrow, lower your monthly payment, or even help you avoid private mortgage insurance.

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

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

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

It’s perfectly fine to choose to stay where you are. For some, that’s the right decision. But it should be a choice, not a default reaction.

Ask yourself: If I decide 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 the kitchen that’s no longer functional? Convert the spare room into a proper office? Redesign the backyard to make it more usable?

Staying doesn’t have to mean settling. Sometimes, finding peace with your current home involves creating a plan to improve it—whether through small updates, strategic renovations, or simply changing 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 expensive 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 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 choose to stay or move, the goal isn’t to time the market perfectly. It’s about making a decision that supports your life and future.

If you’re uncertain about what comes next, let’s talk it through. We can help you weigh the pros and cons, look at real numbers, and explore what’s possible.