Your 3% Mortgage Is Worth Less Than You Think. Your Equity Is Worth More.

If you locked in a mortgage rate around 3 percent, you've probably said it out loud: "We'd love to move, but we'd never give up this rate." With rates back above 7 percent, that feeling is stronger than ever.

It's a fair concern. But most owners never put a dollar figure on their low rate. When you do, the picture often changes.

The question most owners skip

Your low rate only helps you on the money you still owe. It doesn't apply to your home's value. And every month you pay down the loan, that advantage gets smaller.

Your equity works the other way. It grows as you pay down the loan and as your home gains value. For many Boston owners who bought or refinanced a few years ago, equity is now the biggest number on the table.

A real example from Jamaica Plain

Here's a sample scenario I ran through my free Low-Rate Move Analysis tool. The numbers are illustrative, but they're typical of what I see in JP, Roslindale, and Dorchester.

The home is worth about $850,000. The owner still owes $380,000 at 3.1 percent, with 25 years left. Their current principal and interest is about $1,822 a month.

What the low rate is really worth: If they borrowed that same $380,000 at today's rates, the payment would run about $580 more per month. That's the true value of the low rate. It's real money, but it's not the whole story.

What the equity is worth: After paying off the loan and estimated selling costs, they'd walk away with roughly $410,500.

Now the part that surprises people

Say they buy a $750,000 home next. After setting aside money for closing costs, they put down about $388,000. The new loan is $362,000.

That's less than they owe today.

Yes, the rate is higher. At this week's 7.03 percent average from Freddie Mac, principal and interest on $362,000 comes to about $2,416 a month. Add estimated taxes and insurance, and the total comes to about $3,354 for this owner, which fits comfortably inside the $4,500 monthly budget they named.

They could also keep more cash in the bank and put less down. The tool shows both options side by side, so you can see the trade-off before you decide anything.

Why this matters if you feel stuck

Feeling locked in is often a feeling, not a fact. The only way to know is to run your own numbers:

What you'd likely net after selling.
How much you'd need to borrow for your next home.
What your full monthly cost would be, including taxes and insurance.
How that compares to the monthly number you're comfortable with.

Sometimes the answer is "stay put, the rate wins." That's a good answer too. But you should make that choice with real numbers, not a guess.

Run your own Low-Rate Move Analysis.

I built a free tool for exactly this question. It takes about 3 minutes, asks only for estimates, and shows your results before it asks for any contact information. Try it at couldimove.com.

Tip: fill in your current property taxes and insurance. Without them, your current monthly cost looks lower than it really is, and the move looks more expensive than it is.

If you want a sharper answer, I'm happy to review your home's likely value, your estimated proceeds, and the trade-offs of your next move. No obligation. Call or text me at (617) 721-0961 or email [email protected].

Example figures are estimates for illustration only. Selling costs use a 7 percent planning assumption, which is negotiable and varies by transaction. Payments are based on a 30-year fixed loan and exclude mortgage insurance. This is not a rate quote, loan offer, or financial advice. Rate source: Freddie Mac Primary Mortgage Market Survey, September 24, 2026.