‘I don’t see a viable path forward’ moans homeowner ‘stuck in golden handcuffs’ after buying ‘out of reach’ 3 bed house | 6326T90 | 2024-05-01 17:08:01
'I don't see a viable path forward' moans homeowner 'stuck in golden handcuffs' after buying 'out of reach' 3 bed house | 6326T90 | 2024-05-01 17:08:01
A FIRST-TIME homeowner has said she feels trapped in her home despite securing a low mortgage rate.
Amanda, who lived in Portland, Oregon, said she and her husband felt bound by "golden handcuffs."
The homeowner, 36, and her husband Drew, 41, purchased their home in early 2021, during the pandemic.
She said they could afford their home due to the low 3.5% interest rate they locked in for a long-term fixed-rate deal, according to Realtor.com.
"It felt like a now-or-never moment," Amanda said.
"Lower rates equated to more buying power."
The couple purchased a three-bedroom and two-bathroom house, which they said would previously have been unattainable for them.
This ideal situation turned sour when the couple had a son and considered moving back to her hometown of Chicago, Illinois.
Amanda said she felt unable to leave due to the drastic rise in interest rates they would have to take on for a new property.
The current average mortgage rate for buyers is 7.57%, according to The Wall Street Journal.
Amanda described her fixed-low mortgage rate as "golden handcuffs."
"Our current situation is pretty great, but I don't see a viable path forward from here," she said.
<!-- End of Brightcove Player --> "I feel stuck here."
"There's this fear of losing this really incredible mortgage rate that we have," she added.
Amanda said the couple have considered other options in the face of their crisis.
They have contemplated renting out their Portland home and using the cash from there to rent in Chicago.
<!--googleoff: all--> <blockquote class="article__quote"> </blockquote> <!--googleon: all--> The U.S. Sun has previously reported on other homeowners who have also been "trapped" by their mortgage rates.
Nancy Farrington said she was worried about the prospects of successfully selling her condo in this economic climate.
The Boston, Massachusetts, homeowner said she bought her home in 2021 with a 30-year low-rate fixed contract.
She explained that her home, in a desirable part of the city, could be stuck with her, when she plans to move back home to Charleston, South Carolina, as people could be unwilling to take on high rates.
"These days, who is going to take on an 8 percent mortgage?" Farrington said.
"That makes me very pessimistic, but then again, I'm a Catholic and a Red Sox fan, so I'm always pessimistic," she added.
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