{"id":7762,"date":"2026-09-20T22:45:24","date_gmt":"2026-09-21T02:45:24","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=7762"},"modified":"2026-09-20T22:45:25","modified_gmt":"2026-09-21T02:45:25","slug":"when-your-starter-home-becomes-your-forever-home-how-to-weather-the-lock-in-effect-and-make-the-most-of-your-deed","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/when-your-starter-home-becomes-your-forever-home-how-to-weather-the-lock-in-effect-and-make-the-most-of-your-deed\/","title":{"rendered":"When Your Starter Home Becomes Your Forever Home: How to Weather the Lock-In Effect and Make the Most of Your Deed"},"content":{"rendered":"\n
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Who wants to sell a home when they have a low-rate mortgage and land in a market where interest rates are twice as high? No wonder so many people are just sitting on their deeds. It\u2019s the lock-in effect. We\u2019ve been in it for four years<\/a>\u2026 and counting.<\/p>\n\n\n\n

Make no mistake: deed holders are fortunate to be building up equity in these times. Home values are rising faster than incomes, making a deed an important safety net.<\/p>\n\n\n\n

But deed holders face their own financial stress. They may feel, yes, locked in to their homes. If they can, they\u2019re investing in upgrades and additions, making the most of their homes. And yet major renovations are not easily carried out in a time when materials and work are costing a bundle.<\/p>\n\n\n\n\n\n\n\n

Equity-Building: Not as Easy as It Used to Be<\/h2>\n\n\n\n

If you\u2019re \u201cequity-rich,\u201d that means you own at least half the value of your home outright. By living in a home for years, a mortgage borrower gradually pays off debt and owns an increasing share of the home\u2019s value. And simply by staying in place and not sinking large sums into obtaining another home, a deed holder can build up a good deal of wealth<\/a>.<\/p>\n\n\n\n

Yet even today, the equity-rich deed holders among us are actually in the minority. The number of equity-rich deed holders, according to ATTOM data, is dropping. This may be on account of low down payments on homes. And when people borrow against their homes, they\u2019re also drawing down their equity.<\/p>\n\n\n\n

People who acquired their deeds since 2022, when prices began to rise, may have strained their finances to do it. Housing costs can be painful for people who inherited properties that are hard to maintain, or those who are going through divorces or job changes that force them to move.<\/p>\n\n\n\n

And many deed holders are having a hard time with rising property taxes and insurance. (Of course, so are renters, as the extra costs are passed along by landlords.)<\/p>\n\n\n\n

There are cities in Texas that freeze senior deed holders\u2019 property taxes, and make that benefit portable\u2014potentially helping a senior deed holder to move<\/a> without too much of a tax shock. But as most homeowners know, property taxes are piling on costs as real estate prices inflate.<\/p>\n\n\n\n

Love Your Deed: How to Make Your Starter Home a Dream Home<\/h2>\n\n\n\n

For many, the deed to a starter home may become their deed for life. A bigger home may be financially out of reach. The home they planned to live in for a decade is now the home they\u2019re thinking they\u2019ll keep for 20+ years.<\/p>\n\n\n\n

Others have the opposite problem. They live in a home that\u2019s too big and now they cannot move. Sure, they could purchase or rent a more compact home, but the idea of paying more for a smaller home doesn\u2019t feel like the right move. They\u2019re ready to downsize\u2026. But downsizing to a smaller yet more expensive home\u2014trading in a low-interest mortgage they got in 2022 for a loan with nearly 7% interest\u2014just doesn\u2019t make sense.  <\/p>\n\n\n\n

Whether they wish their home could be larger or smaller, homeowners are nesting in creative ways.<\/p>\n\n\n\n

For those who need more house, this could mean:<\/p>\n\n\n\n