How Your Home Mortgage Could Limit Your Career Opportunities

view original post

It is hard to imagine that home ownership would have any negative impact on career opportunities, but that is exactly what is happening. Many workers locked in low mortgage rates when the market was strong. Now those low rates are limiting their ability to pursue new careers if they have to sell their home to do it. According to the Federal Housing Finance Agency, homeowners with existing mortgages have an average interest rate that is 2.5 percentage points lower than current market rates. This gap is freezing workforce mobility, with fewer people willing to sell their homes and move for work opportunities. It is affecting workers at every level, including the C-Suite, although some companies are responding with relocation packages and incentives to help.

Why Mortgage Rates Are Limiting Career Opportunities

In the United States, locking in a 30-year fixed mortgage has been the standard for a long time. It gives homeowners predictable payments and a sense of security, especially for those who remember how risky adjustable-rate mortgages became during the last housing crisis.

As someone who holds an Arizona real estate license and worked as a loan officer during the subprime mortgage boom, I saw how quickly expectations could unravel. The thought at the time was that buyers with poor credit could refinance before adjustable rates kicked in. Instead, many found themselves trapped when home values fell and refinancing became impossible. That experience made me skeptical of adjustable-rate mortgages, and it also helps explain why homeowners today would resist giving up a three percent mortgage rate.

Moving for a new job today usually means staring down mortgage rates that are much higher than before. Even with a salary increase, the higher monthly housing costs can easily wipe out much of the financial gain. For many people, it simply does not make sense to trade a known, affordable payment for something much more expensive and unpredictable.

How Renting Instead of Buying Can Affect Career Opportunities

One way people are adapting is by turning to renting. In towns all across the country, the rental market is booming as buyers pull back. Renting gives workers more flexibility, but it also comes with trade-offs. Renters lose the mortgage interest deduction, which has historically been a financial advantage for homeowners. Renting can also feel like a step backward for people who see homeownership as a part of their long-term wealth building.

There is also the issue of rental market instability. While mortgage payments on a fixed-rate loan stay predictable, rents can rise every year. For workers thinking about a move, the risk of big rent increases down the road can make renting feel less appealing. Choosing between giving up mortgage benefits or facing higher housing costs later is not always an easy decision.

Some homeowners with low mortgage rates are renting out their current homes and choosing to rent somewhere else. This way, they keep their three percent loan while gaining flexibility to relocate for work. However, managing a rental property from a distance is not always easy. There are tax laws around rental income, primary residence rules, and potential capital gains taxes to think about. Homeowners have to weigh the costs and responsibilities of becoming landlords against the benefits of being able to move. Talking to a tax advisor first is often a smart move.

How Companies Are Responding To Improve Career Opportunities

Employers are starting to realize how much harder it is to move talent across state lines. To ease the burden, some companies are expanding their relocation benefits. U.S. Bank, for example, offers a corporate relocation mortgage program that provides up to $1,000 off closing costs for eligible employees. Toyota Financial Savings Bank also offers relocation mortgage benefits, including interest rate discounts for transferring employees. While these programs are helpful, they often do not fully offset the financial challenges of giving up a low mortgage rate.

Beyond mortgage programs, some companies are offering more hybrid or remote leadership roles to make relocation less necessary. Allowing executives and skilled professionals to split their time between remote work and being on-site gives companies more flexibility in hiring. While not every role can be remote, organizations that are willing to be flexible are finding it easier to attract and keep strong talent.

These programs show that companies are beginning to understand that supporting career opportunities sometimes means helping employees stay financially stable through housing transitions.

How Housing Costs and State Laws Are Creating Barriers to Career Opportunities

Housing costs are not the only thing holding workers back from pursuing career opportunities. As I wrote about in my recent article on how state laws are complicating remote job options, moving across state lines introduces another layer of challenges. Workers might find the perfect remote role, only to realize that switching states brings new labor laws, different taxes, or expensive insurance requirements that change the math entirely.

The combination of housing challenges and state compliance issues is making it harder than ever for workers to take advantage of opportunities outside their immediate areas. Companies that cannot offer remote or hybrid options may find themselves pulling from a much smaller talent pool.

Mobility today is not just about whether someone is willing to move. Financial realities, housing markets, and local employment rules are shaping career decisions in ways that were not nearly as complex a few years ago.

What Homeowners Should Consider To Protect Career Opportunities

If you are thinking about a career move, it is important to understand how your mortgage could affect your options. In some cases, it might make sense to rent out your home and rent somewhere else for a while. In others, it could be smarter to wait for the housing market to stabilize or focus on finding a fully remote role that allows you to stay in place. Before making any move, it is a good idea to talk to a tax advisor and learn the full implications of renting out your home. Research rental markets carefully, weigh all the true costs of moving, and be realistic about whether a new salary offer truly offsets a higher cost of living. Career opportunities are still out there, but they now require more careful planning. Thinking strategically about your mortgage, your housing costs, and your next career step will help you stay ready for new opportunities without putting your financial stability at risk.