Snowbirds Beware — The Difference Between Moving South and Staying Put Could Be $168,000
Written by
Martin Dasko
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
According to recent research from Realtor.com, the average mortgage payment has increased by about 44% over the last four years, reaching $2,005 today. The report also cited that aside from a week in late February 2026, interest rates have been above 6% since September 2022. This means that many potential sellers are locked in.
As a retiree or someone who’s close to retirement, you might be debating what to do about your living situation, as you may be tempted to relocate to a warmer climate to bring down living expenses.
Would it make sense to move to a Southern state in retirement compared to keeping your current residence in a northern or colder state?
What’s The True Cost of Moving Down South?
According to Zillow, the average home value is $375,662 in Florida and $569,411 in New Jersey. If you have a paid-off home in New Jersey and you decide to sell it to buy a property in a warmer state like Florida for cash, it may feel like you’ll have a decent amount of money left over. However, you have to factor in closing costs and moving expenses. The entire situation changes when you’re carrying a mortgage.
Higher Interest Rates Will Bring Your Expenses Up
“The most significant yet least obvious expense in any down south retirement move is the change in mortgage rate environment, which retirees never take into account in their budgets,” said Cody Schuiteboer, a real estate expert and president at Best Interest Financial.
Schuiteboer noted that his company recently assisted a couple with a move from Michigan to Sarasota, Florida. The difference in mortgage rates alone translated to $168,000 in extra interest paid over a 20-year period. He cited that anyone who secured a 3.25% mortgage or lower in 2021 and sells today to purchase a property with rates around 6.75%, their monthly payments could increase by $700 to $1,200. While there are many variables at play here, if you carry a mortgage, you could be spending more on interest by moving south right now.
You’ll Have New Expenses
“Take your total monthly all-in housing cost (mortgage, taxes, insurance, and maintenance) today and compare that with the anticipated payback in a new spot,” shared Seann Malloy, the founder and managing partner at Malloy Law Offices.
He stressed that if you have to carry a mortgage or if you’re too focused on just home prices, you could be blindsided by insurance increases, which can equal thousands of dollars a year.
Considerations of Moving Down South
Before you sell your home or make a decision about where you live in retirement, you want to consider the following expenses:
- Buying another house.
- Mortgage rates now compared to what you locked in at.
- Property taxes in the new location.
- The possibility of spending money on rent before you buy.
Staying Put Can Be Cheaper
“For those with a home already purchased in a colder state with a low fixed mortgage, or no mortgage, staying may be the more prudent financial choice,” remarked Malloy.
He emphasized that even if property taxes drop, insurance and HOA fees may still hurt your budget. You can use a calculator to compare living costs in different states.
Schuiteboer warned that high transaction costs alone may wipe away multiple years of projected savings. He pointed out that selling a home involves paying up to 10% in sales-related fees, such as agent commissions, closing credits, transfer taxes and title insurance.
More From GOBankingRates
