Should I sell my house now to use the equity, even if I have to buy my next home at a higher mortgage rate?

Hi Martha, The determination is so specific to your needs and pain point. Is your quality of life impacted by the cramped space? Connecting with a skilled expert in your area, you can get a realistic notion of what your house is worth, what potential net proceeds you have to work with, explore the market as a buyer and see how the realistic numbers line up. Depending on the market conditions in your area, you may be able to negotiate a credit to closing costs or a rate buy down from the seller which could ease your pain with regard to rate. You could also take out a HELOC to use for the down payment (depending on lender, very often you are limited to 40-50% of your equity) and keep your starter as an investment property. So many great options. Reach out if I can connect you to a reputable broker in your area!