Mortgage Rates Jumping from 4% to 8%: What Should This Investor Do?

BiggerPockets Money Podcast

BiggerPockets

Investing, Business, Education

4.5 • 3K Ratings

🗓️ 19 June 2026

⏱️ 62 minutes

🔗️ Recording | Apple Podcasts | RSS

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Summary

How do you build nearly $1 million in net worth while working seasonally, living intentionally, and creating a lifestyle you actually enjoy? In this episode, Heather shares her remarkable journey from living in a 300-square-foot cabin to building substantial wealth through nursing, guiding, rental properties, and smart financial decisions. We break down her real estate portfolio, income streams, and the challenges that come with balancing financial independence and life goals. With mortgage rates potentially doubling from 4% to 8%, Heather faces several important decisions: Should she pay off rental debt, refinance, sell properties, or preserve flexibility for a future sabbatical? We explore the numbers, the emotional side of real estate ownership, cash reserve strategies, tax considerations, and how to create a financial plan that supports both long-term wealth and personal freedom. Whether you're building wealth through real estate, planning a career break, or navigating major financial decisions, this conversation offers valuable insights and actionable takeaways. To go beyond the podcast: Kick start your financial independence journey with our FREE financial resources - https://biggerpocketsmoney.com/ Subscribe on YouTube for even more content- www.youtube.com/biggerpocketsmoney Connect with us on social media to join the other BiggerPockets Money listeners - https://www.facebook.com/groups/BPMoney We believe financial independence is attainable for anyone no matter when or where you’re starting. Let’s get your financial house in order! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Today's guest, Heather and her husband, who are both in their mid-40s, have built nearly
0:04.6	$1 million in net worth on a median income and a commitment to living intentionally.
0:10.3	Together, they earn about $115,000 per year, working part-time and seasonally.
0:15.7	And over the last two decades, they've gone from living in a 300 square foot cabin with no running water to building
0:23.1	a custom home and a small rental portfolio. But now they're at a crossroads. Should they pay off a
0:28.3	rental property or keep the debt? Should they sell any of their rentals, especially with a refinance
0:33.8	coming up in 2026? Their mortgage rate will jump from 4% to 7% and that's not small
0:39.3	potatoes. Can they afford to take an extended sabbatical in 2027 and spend part of the summer
0:45.7	traveling as a family even though that's their peak earning time? Let's help Heather figure out
0:51.2	what her options are.
1:00.2	Hello, hello, hello, and welcome to the Bigger Pockets Money podcast.
1:05.4	My name is Mindy Jensen, and with me as always is my loves Finance Friday co-hosts, Scott Trench.
1:06.0	Thanks, Minnie. Great to be here.
1:06.6	Excited to chat with Heather today about her numbers.
1:10.4	And this is the first time we're going to use Monarchs dashboard to do a finance Friday.
1:14.7	So I couldn't be more excited.
1:15.6	Heather, welcome to the Bigger Pockets Money podcast.
1:18.0	Hi.
1:18.4	Thanks so much for having me.
1:19.9	I'm very excited.
1:20.9	Longtime listener.
1:21.6	Well, thank you for listening.
	...

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