A recent study revealed that one-third of homeowners who are thinking of selling their homes in the near future are planning to downsize their homes. Here are a few reasons why this may make financial sense for many people.
We are currently in a seller’s market in the majority of the country. Here are three of the potential Financial advantages to downsizing.
1. A smaller home means less time money spent on upkeep.
2 The money you save on your mortgage payment can be put into savings. This could add up to a considerable sum over a period of time.
3. If you use the proceeds from your home to pay cash for a smaller home you will have lower monthly payments and you will have much more money to save for your retirement. If you can’t pay all cash, try for a 15 year mortgage instead of 30. Use the money you’re saving pay your mortgage off even earlier. Again this can mean a considerable sum of money in your savings.
Another possible benefit – you can use the proceeds from your current large house and buy two smaller homes. One where you live nowm use the other as a vacation home. Eventually when you retire move into the vacation home full-time.