Make your life simpler: A large home usually means more expenses, more maintenance work and upkeep, and possibly more space than you really need. Moving to a smaller home can (sometimes) mean a less expensive mortgage, less work to maintain the home and becoming mortgage-free quicker.- More money for other goals: Usually a larger home means a bigger mortgage which means that much of your income is spent on housing. When you downsize, you can have a smaller mortgage which means more income can go towards other goals such as savings, retirement, travel, college tuition, etc. The freedom to have more money for life goals is something that many homebuyers are looking for and can be achieved when buyers choose to downsize.
- Gain the potential to move into a better neighborhood: Most homebuyers desire to live in a great neighborhood in a sought after area and to put down roots there. Moving into a smaller home in a great area instead of choosing a larger home in a different area can be a wonderful trade off. Being in a great area can mean a better school district, better walkability, lower crime rates, and more.
If you are considering downsizing, be sure that you have lived in your current home long enough that you have some equity, at least enough to cover closing costs. Meet with a mortgage lender to determine what the profits may be from selling your current home and how much you can save if you downsize and go with a smaller mortgage.