Low Mortgage Payments Are the New Golden Handcuffs
- Caitlin Muldoon
- Aug 27
- 3 min read
The best way to sabotage your wealth is to stay in a situation with no growth.
I’ve made some big moves in my life, and not just geographically. Each time, I’ve had to make the hard choice of leaving behind a “perfectly fine” housing situation, with a mortgage payment that made financial sense on paper, in order to step into something bigger.
In 2013, my husband and I left behind a 2.6% mortgage rate for a new home with a 4.1% rate. In 2024, we left a nearly paid-off home and purchased a new one with a 7.1% mortgage rate. We even sold several rental properties that were locked in at enviably low rates, exchanging them for new properties with much higher financing costs.
To most people, that might sound crazy. But every one of those decisions created more room for us to grow- whether it was in revenue, physical space, career opportunities, or lifestyle.
And that’s the point I want to make: sometimes what looks “safe” on paper is actually what’s keeping you stuck.
The Market Reality: Why Everyone’s Waiting
Interest rate cuts are expected next month, which has many people wondering if this will finally be the right time to make a move.
For years, would-be first-time buyers and growing families have been sitting on the sidelines. The Wall Street Journal recently published a report on the latest mobility data in our country: the past two years have the lowest percentage of our population moving than ever recorded. The logic makes sense: why buy now, with high home prices and interest rates, when you could wait for rates to drop? Why give up a low mortgage payment just to step into a much bigger one?
I used to approach my rental portfolio the same way- tracking rate movements to see when refinancing made sense. But in recent years, refinancing hasn’t been on the table because of how high rates have climbed. And yet, we’ve still bought and sold properties. Because in every case, the decision wasn’t just about interest rates or monthly payments. It was about growth.
Immobility: The Hidden Cost
Right now, conditions in the housing market (high rates and sky-high prices) are keeping people immobile.
To summarize the WSJ report:
📰 People with 3% mortgages won’t sell. Companies aren’t hiring entry-level workers. Dual-income families can’t risk one person losing their job. The result: growing families are trapped in tiny homes, empty-nesters won’t downsize, and young people can’t start their lives. This stasis is shrinking our economy.
And it’s shrinking our personal growth, too. Because here’s the truth: the best way to sabotage your wealth is to stay in a situation with no growth.
Thinking Outside the Golden Handcuffs
If you’re staying in your current home because it feels “safe”- the payment is manageable, you’re close to family, you’ve built some community- pause and ask yourself:
🤔 Where would you live if money weren’t an issue?
🤔 What career opportunities would be available there?
🤔 How would your salary and growth potential change?
🤔 What kind of lifestyle would you have in that place, and how would it differ from today?
🤔 What expenses do you carry now that you might not need in your ideal location?
Are you paying for tutoring or enrichment programs because the local schools aren’t strong enough?
Do you spend weekends dining out because your city lacks other options?
When you calculate the trade-offs, you might find that even with a higher mortgage payment, the move makes financial sense. Because higher earning potential, better schools, or a lifestyle that supports healthier choices all have ripple effects on your long-term wealth.
The Domino Effect of Growth
Even if you break even in the short term- say your new salary just covers your higher mortgage, consider the domino effect:
Your income potential grows.
Your quality of life improves.
Your family thrives.
And all the while, your new mortgage payment stays fixed.
That’s why I’ve never regretted leaving behind the comfort of a low payment. What I've gained on the other side wasn’t just a bigger house or a different zip code- it was a bigger life.
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