If you are an older couple or individual whose kids have all graduated from college and moved out, your home can feel more like a quiet museum than the place where you raised your family. If you have experienced this feeling, perhaps “downsizing” is the right move for you.
Downsizing is exactly what it sounds like: trading in your larger home for a smaller home that still meets your needs. But why would you want to go smaller when we’ve always been told that “bigger is better?” Here are a few reasons:
- Lower your cost of living– with higher energy prices, it appears your utility bill will only continue to get larger. Downsizing means you need less energy to cool and heat a smaller home. You also need less stuff in a smaller home, meaning you are forced to spend less and even sell some of the things that would make your new home a little too cramped.
- Reduce your mortgage payments– one of the largest single payments you face each month, your mortgage can take up anywhere from 30-50 percent of your income. A smaller home generally means a lower price tag, resulting in lower mortgage payments and more disposable income.
- Cut down on maintenance time– less area to clean and maintain means you spend less time cleaning and more time living how you want to.
- Make a fresh start- if you have always wanted to live closer to where the action is or in a more remote area, downsizing provides that opportunity to make a fresh start in addition to the financial benefits.
Stop and Think Before You Act
It’s important to consider all angles of downsizing. For example, if you love hosting friends and family from out of town, will you still be able to in a smaller home? Be sure to go through the pros and cons of downsizing before making a decision. If you have committed to downsizing, you can work with a real estate agent who has earned a Seniors Real Estate Specialist (SRES) credential.
While you may be able to purchase your downsized home with cash, a mortgage may not be out of the question. If you are looking for a reputable mortgage lender who knows the area, Putnam Bank’s mortgage lenders are your solution. Be sure to get in touch with them today to start the conversation.
Putnam Bank, Member FDIC and Equal Housing Lender