Should I Downsize My Home And Pay Off Mortgage – Deciding whether to downsize your home should be given careful thought. Many questions must have been running through your mind such as if it will help you prepare for your retirement if it’s going to help you sort or reduce your financial debt, or probably your kids are gone which makes the house seem too big for only you. Downsizing can be economical by saving you both money and stress in the future, which denotes that having a less space attracts a lesser financial burden. Many people feel reluctant to downsize their home because of the arduous process and the emotional and financial burden of moving.
should i downsize my home and pay off mortgage
To make the right decision on downsizing your home, here are the major questions you must ask yourself;
Pros and Cons Of Downsizing Your Home
How high are your mortgage payments?
The amount left to the balance of your mortgage should be well considered as the most significant deciding factor to downsize. This should be most considered by as your retirement nears, you will want to cut debt as much as possible since your income is going to drop. If you notice you still have much mortgage to pay off, and your average age of retirement is getting closer, considering downsizing to will be a wise and great option.
Can you afford to move?
Considering the time and financial commitment to invest in downsizing is essential, it can be enough reason to get discouraged if you are not financially buoyant and getting a professional mover costs like $2000 to move from a bigger home to another place locally. Looking at the stress aspect, it consumes a lot of time and energy by having to pack your loads into boxes, disarranging and rearranging furniture, moving heavy object to a new place and lots more, after all these are done, and you finally got to your new home, you will definitely have to unpack and get settled. You have to know if the time and stress you will invest worth it in the long run.
Can you say goodbye to your belongings?
In the process of downsizing your home, it is certain that you are going to lose some of your property or willingly donate them away because in the process of moving all your current appliances will fit into a smaller one. It’s always hard to say goodbye to items that you have spent your money on and lived with for years. Aside from the belongings, leaving your loved ones, the neighbour is one of the difficult and most emotional aspects of the move.
Do you live near your family?
People who are close to retirement and planning for a downsize are the automatically ageing individual. Ageing comes with declination in health status, and the ability to take care of the big house becomes a burden considering the health status. Ageing people need to downsize their home and move to a smaller home that only has a master bedroom, walk-in shower and close to amenities such as public transportation in case the inability to drive comes up. Additionally, having a family to rely on in helping with the home chores is of necessity.
Will someone inherits the house?
Possible inheritance of the house should be deeply considered, seeking the opinion of the children, grandchildren and other kins if they will like to inherit the home after you pass away. If they are not interested downsizing the home is a good option. If you have some mortgage balance to pay off, the co-borrower will be held responsible, in the absence of the co-borrower the home will go into foreclosure after your passing away.