There may come a time in your life when you need money to pay down some debt, reduce your mortgage, lower your bills or increase your cash flow. And when that time comes, downsizing your home is one of the best options to do so. But is it really worth selling your home to move into a bungalow or a condo? Financial experts seem to think so. Find out here why many people are ditching their current homes to downsize into a more affordable one.
The Kids Have Moved Out
Have you officially become empty nesters? If so, now’s the time to consider downsizing to save money. With the kids gone, you’ll likely be paying twice as much in utility costs than you need to. Why spend money on heating and cooling rooms that aren’t being used? By selling your home and moving to a smaller one you can not only greatly reduce your annual utility costs but also your taxes and insurance. It’s a win-win!
You’d Like to Pay Off Debt
Are you riddled with credit card debt and unsecured loans? Downsizing might be the solution to reducing your debt load significantly. Selling your current home for a less expensive one will let you pay off all your other debts and give you the breathing room you need to live comfortably.
You Need to Free Up Cash
If you’re cash strapped and can’t access more equity out of your home, downsizing can help free up cash. Switching to a smaller home with a lower mortgage can also allow you to start building up your other investments so that you can have a bigger nest egg by the time you retire.
You Want to Retire Sooner
Speaking of retirement, if you still have a mortgage that’s holding you back from your retirement goals, downsizing can also be beneficial. If you do it right, you could even use the proceeds from the downsize to retire years earlier than planned.
Your Mortgage Payment Is Too High
Life can throw a number of curveballs that can impact your income and finances. If you’ve experienced a major life change that has made it difficult to make your mortgage payments, it’s time to call a mortgage broker. Downsizing and moving into a more affordable home can lower your payments and give you the peace of mind you need.
There’s a lot of positive benefits of downsizing, but it’s not always for everyone. If you wish to explore all of your options to reduce your mortgage and debt load or to access more money, contact us at the Mortgage Advisors today. One of our agents will be happy to review your finances and help you make the right decision for your needs and lifestyle.