Should You Sell Your Home with a Low Mortgage Rate in 2025? Not So Fast
If you’re a homeowner in Carmel or anywhere across Central Indiana, and you locked in a low mortgage rate a few years ago, you might be wondering if now is the right time to sell your home. With home prices still strong but interest rates climbing to levels we haven’t seen in years, it’s tempting to think about moving on — maybe upgrading to a bigger home or relocating to a different neighborhood. But hold on for a second before you jump into listing your property. Your low mortgage rate might just be your secret weapon in today’s market, and instead of selling, it could open doors to a world of new financial opportunities. At Monon & Main Properties, we’ve seen firsthand how homeowners who understand the value of their low-rate loans are turning their homes into powerful wealth-building tools — not just places to live.
The True Value of a Low-Interest Mortgage
Think about it: a few years ago, mortgage rates were hovering around 3% or even less for some lucky buyers, while today’s rates are often double that. This difference isn’t just a number on paper. It can mean an extra several hundred or even a thousand dollars every month in mortgage payments if you sell your current home and buy another with today’s higher rates. That low-rate mortgage you locked in isn’t just a “nice to have” — it’s like holding a golden ticket. It gives you the chance to keep your monthly housing costs low while the rest of the market struggles with steep financing expenses. By holding onto that loan and turning your home into a rental property, you don’t just preserve your low payments — you can also start earning passive income, build long-term equity, and enjoy a financial cushion many people would envy.
Real-Life Success: Emily and Jordan’s Smart Move
Take Emily and Jordan, for example, who live right here in Carmel. They bought their charming three-bedroom home near the Monon Greenway in 2021 at an incredibly low mortgage rate of just 2.75%. As their family grew, they naturally wanted more space, so they began exploring options to upgrade to a bigger home in Zionsville. But when they looked at the numbers for new mortgages at current rates, they realized their monthly costs would jump by nearly $1,000 — a significant increase that didn’t feel worth it for just a bit more space. Instead of selling, they made a smart choice: they decided to keep their original home and rent it out. With Carmel’s booming rental market, they quickly found tenants willing to pay well above their mortgage payment, turning their former primary residence into a steady source of income. This approach not only helped them comfortably afford their new home but also created a valuable investment asset for their future. Emily and Jordan’s story is a perfect example of how savvy homeowners can turn market challenges into exciting opportunities.
Why Renting Could Be Smarter Than Selling in Today’s Market
So, should you sell your home in 2025? Maybe not if you’re sitting on a mortgage with a rate under 4%. The rental market in Central Indiana is hot, especially in highly sought-after communities like Carmel, Westfield, Noblesville, and Zionsville, where renters are searching for quality homes in excellent school districts. When you have a low mortgage rate, you hold a unique advantage: you can offer competitive rent prices while still earning positive cash flow — a rare combo in today’s high-rate environment. Plus, renting your home means you’re still building equity as property values rise, and the tenant’s rent is essentially helping pay down your mortgage. There are also tax benefits that come with being a landlord, including deductions on repairs, maintenance, property management fees, and even depreciation. It’s a win-win situation that turns your home into a long-term financial asset rather than just a place to live.
Keep Moving Forward Without Selling Your Home
Life doesn’t stop moving just because mortgage rates go up. Maybe your family needs more room or your job is relocating you to a new city. The great news is that you don’t have to sell your current home to make a fresh start. By renting it out, you gain the flexibility to move on without giving up a valuable investment. Whether you decide on a traditional long-term lease or explore short-term rental options, holding on to your property can be the difference between merely changing addresses and making a powerful financial leap forward.
Think Like an Investor — Your Home Is More Than Just a Place to Live
At Monon & Main, we’re passionate about helping homeowners think beyond just living in their homes. Your house is more than your space — it’s a foundation for building wealth. We’re here to guide you through evaluating your home’s rental potential, estimating what your returns could look like, and understanding what it takes to be a landlord. Plus, we connect you with trusted local experts like property managers and contractors, so you’re never going it alone. Whether you own in Carmel, Westfield, Noblesville, Zionsville, or Lebanon, we can help you take your homeownership to the next level.
Explore Your Options with Monon & Main
If you’re considering selling your home this year but have a low mortgage rate, take a moment to explore all your options first. Keeping your home might be your best financial move — a way to start or grow an investment portfolio, generate monthly income, and build lasting wealth. Reach out to Monon & Main for a free consultation, and let’s crunch the numbers together. We’ll help you weigh selling versus renting and craft a plan tailored to your goals today — and for many years to come. Your low mortgage rate isn’t a limitation; it’s an exciting opportunity waiting to be unlocked.
