The kids have started their careers and moved out of the house. Their rooms are now guest bedrooms and an office. The minivan is long gone, replaced by a two-door convertible. And even though you’ve always had a golden retriever, your current pup is a 21-pound Boston Terrier.
On top of everything else, maintaining a home that is suddenly spacious may seem more like a chore than a labor of love. The endless hours spent keeping up the lawn, painting, updating and repairing that three- or four-bedroom house now seem to be “just too much.”
It may well be time to downsize.
If moving into a smaller home, anything from fewer square feet and rooms in a single-family house to a garden style condo sounds appealing, consider the following:
“Downsizing” is highly subjective. After all, for a couple who raised six children in a five-bedroom house with a finished basement and a three-car garage, a move into a three-bedroom, two-bathroom home is a significant change.
But for a couple who raised one child in a two-bedroom home, “downsizing” may very well mean moving into a condominium.
It’s important to take the time to determine what your current needs are, what you “want” versus what you “need” and how you envision your new downsized lifestyle.
When you’re downsizing from the family home to something smaller, think about how you envision your new life. Ask yourself:
Do you plan to stay in your new home, condo, townhouse or duplex for the rest of your days or is this a temporary move? How long you think you’ll stay in your smaller home will have an impact on the size, features, location and other considerations when downsizing. If you are just planning to stay for a few years and then move full-time to a warmer climate, you may be willing to compromise on features that you may see as non-negotiable in a longer-term home.
How long you plan to stay in your new, smaller home may also affect your decisions with regard to your mortgage (see below).
Downsizing to a smaller home presents you with numerous opportunities and some considerations:
In many cases, selling the family home means having some or even considerable equity at your disposal. These funds could be used as a downpayment on your new home, put into a savings account or invested.
Or, depending on your personal situation, you may be in a position to pay cash for your downsized home, eliminating the need for a mortgage.
While being mortgage-free may sound appealing, it may not always be the best move, especially if you have access to a low-interest mortgage. After all, downsizing is a golden opportunity to change your living expenses, create a new lifestyle or lead to new, future possibilities.
An experienced and skilled mortgage lender can be invaluable when it comes to making these decisions. You can count on your lender to give you clear, accurate information about the upsides and downsides of your options.
Is it time to downsize? SmartMortgage.com by Guild Mortgage has experienced agents ready to help you begin your journey to the home that best matches your new lifestyle and needs. We will help you review your situation and objectives, and help you get the right home with the right loan.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
Short-term real estate rentals have gained popularity in recent years and seem likely to maintain their appeal. Many travelers and tourists now seek out these properties as a cost-effective and interesting way to secure accommodations for a few days or weeks. Owning a short-term rental property as an investment is in many ways similar to […]
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
