They never expected to feel stuck in their dream home.

When two dear friends of mine (let’s call them Joe and Jane) bought their two-bedroom starter house in late 2020, it felt like the beginning of a promising chapter. Interest rates hovered just below 4 percent, their mortgage felt manageable, and with a baby on the way, they believed they were laying down roots. By the start of 2025, the picture had changed. Two children, hybrid jobs pulling them in opposite directions, and no third bedroom in sight. They’d outgrown the house. What they hadn’t outgrown was their 3.5 percent mortgage.