![]() Just imagine what you could do with no mortgage holding you down! Okay, here’s one more smart way to use the extra money you get from downsizing your home: Trade in your mortgage for a paid-off home! Use the proceeds from selling your current home to pay cash for a smaller one. You can do a lot of living and giving with that nest egg! In 30 years, you could have an additional $1.1–1.7 million in the bank to get you through your golden years. And, boy, the difference $500 could make! If you’re still working your way up to 15%, that extra $500 could be the push you need to get there. We recommend investing 15% of your household income into Roth IRAs and pretax retirement plans. ![]() Once you’re debt-free with a fully funded emergency fund, it’s time to build wealth for the future. Sallie Mae will have to find a new place to live, because you’ll be free from student debt in less than two-and-a-half years! But is more time with the ones you love really all that bad? It just might be the kick in the pants you need to spend quality time together.įind expert agents to help you sell your home.īut throw an additional $500 at your loan each month, and you’d trim a whopping seven-plus years off your payoff date. When it comes down to decision time, you may find that taking that leap to a smaller space will save you big time-or that you can save just by staying right where you are.ĭownsizing your square footage might mean your family has to gather around one TV at night instead of spreading out across three or four different rooms ( Gasp!). You just might find a whole new world outside your door!ĭownsizing may save you money in those monthly mortgage payments, but what about the hidden costs? Does your home need any repairs to get it market-ready? What about your old furniture and appliances-will they fit into the smaller place, or do you need to bump up that budget for more space-efficient pieces?Īnd don’t forget to take into account the cost of moving, property taxes, storage or even higher HOA fees. ![]() Think of all the fun you could have if you didn’t have to polish your miniature unicorn collection every weekend. Wouldn’t it be nice to have less to clean and more money in your pocket? Sell what you don’t need and take that money to the bank, baby! Or donate it to a local charity and get the added bonus of a tax benefit. Though that may be far from practical these days, you can still benefit from cleaning out the clutter from those closets. Remember back in college when your entire life fit in that tiny dorm room? Somehow you had everything you needed within arm’s length. Do you need extra space for that freelance business you’re planning to start? Or were you left with more than enough room to spare after the kids headed off to college? Only you know if you can spare that extra space or if losing it would be more of a headache than it’s worth. If you’re thinking about downsizing your house, planning ahead will set you up for success. ![]() Smaller mortgage payments and spending less time dusting those spare rooms may sound like a dream come true, but is downsizing really the right move for you? Before you head down the path toward downsizing, here are some tips to make sure your downsizing dream doesn’t become a costly mistake. Downsizing could be just the fresh start you and your family need! Moving into a smaller home may feel like a step down, but a closer look reveals quite a few upsides: saving money, saving time and having less clutter in your life. 2, 3 By those standards, today’s homeowners are living large! The average home size in 1975 was almost 1,000 square feet less than homes built today-and families were bigger back then. 1 You may not think that’s all too big until you look back at history. Most American families have plenty of room to downsize their home without cramping their style.Ĭonsider the numbers: The average new single-family home comes in at nearly 2,500 square feet. Some people think moving up in life means buying a bigger home-well, it’s time to set the record straight.
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