Every few weeks I hear from a homeowner who feels like they are underwater. Not because of their mortgage balance, but because the weight of monthly payments, property taxes, and rising costs are slowly dragging them down. One recent message really stuck with me. A couple shared how they bought their first home during the pandemic housing rush. They were young, hopeful, and excited to build equity and put down roots. But just two years later, they are feeling crushed. The property taxes have jumped. Their escrow account is short. Their mortgage payment has ballooned. And they are wondering if it is time to sell the house they once loved and find something more affordable.
This is the harsh truth of homeownership in today’s market. We are seeing high interest rates, increasing taxes, inflation, and life’s unexpected turns all adding pressure. Many people feel embarrassed to admit they are house poor. But let me be clear. There is no shame in reassessing your financial situation and making the best choice for your future. You are not failing. You are making a strategic decision to protect your finances, your mental health, and your family’s wellbeing.
What to Do If You Are Feeling the Pressure
Start by evaluating your real options. Ask yourself:
- Can I refinance to a better rate or lower monthly payment?
- Can I rent out a portion of my home to increase cash flow?
- Can I cut discretionary expenses to make things manageable?
If those do not provide enough relief, selling might feel drastic, but it can also be freeing. Look at your equity. Get a realistic estimate of your home’s value. Talk to a real estate agent who understands your local market.
Consider the Costs of Downsizing
Before you list your home, you need to look at the complete financial picture. Downsizing is not just about buying something cheaper. Here is what you need to consider:
- Your current mortgage interest rate compared to today’s higher rates
- The cost of buying a new home including inspections, appraisals, and closing costs
- The cost of moving and possible temporary housing
For example, a home priced at $400,000 today with a 7% interest rate could result in the same payment as a $600,000 home you bought with a 3% percent interest rate.
Avoid Mortgage Forbearance If Possible
It might feel like a relief to pause your payments, but putting your mortgage into forbearance can create bigger problems down the road. Lenders will see that as a sign of financial distress, and you may not qualify for a new loan even if you sell and walk away with cash in hand.
Instead, speak with your lender. They may offer solutions such as loan modification or payment restructuring that preserve your ability to move forward.
You Are Not Alone
The most important thing to remember is this. You are not alone. Many homeowners are feeling this pressure. The smart ones are asking questions, exploring options, and acting early. The sooner you seek support, the more choices you have.
Final Thoughts
Your home should not feel like a burden. It should feel like your sanctuary. If that is no longer the case, you owe it to yourself and your family to explore all options with clarity and support.
If you are struggling with the decision to sell your home, I can help connect you with a vetted local real estate expert who will walk you through your options and provide unbiased advice. Reach out today. You do not have to figure this out on your own.
