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If you have a home that feels too big for your needs, you can use your equity to downsize. Between housing costs, like maintenance or repairs, and other monthly debts, selling a home that no longer serves you can boost your finances and enhance your daily life.
Downsizing occurs when a person buys a home smaller than the home they currently own. Downsizing cuts back on space, physical objects, and financing costs.
There are many reasons why homeowners downsize. Many have to do with new life adjustments or phases.
Here are some of the common reasons a person may downsize:
A large home requires more upkeep than a smaller home. Clean up, general seasonal chores, maintenance, and repairs can cost $1,200 on average per month. Downsizing can reduce these costs, especially if the smaller home is in better condition than the previous.
Just like a cut in costs to maintenance, you can experience the same with your insurance. The size of your home affects your insurance premiums and smaller homes are usually less costly. Smaller homes also require less energy to climate control.
By spending less money on your home, you can use your leftover funds to move to a more desirable neighborhood. Older homeowners may prefer to downsize into an older adult community to feel more connected to their community. A younger homeowner may downsize to move to a dream location or use their funds to travel.
Some people may decide to downsize to make their home safer as they age or their needs change. A larger home can be a financial burden as well as a physical one. With a smaller one-level home, a person can have more freedom and independence in their own space. Adding a zero-step entry and other accessible features ensure their home needs age with them.
Whatever home size fits your needs, we’re here to help you reach your homeownership goals! Whether you’re purchasing a starter home, downsizing, or looking for an investment property, our Loan Originators will be in your corner along the way. Contact us to get started today!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.