There are a number of reasons why you may downsize your home in retirement. Perhaps you’ve simply tired of excess space after your kids go off to college. Maybe you’re looking to move to a more expensive location and don’t want to take a financial hit by doing so. Or, perhaps you’ve made the decision to sell your large home and buy a smaller one, deeming this one of the smartest ways you can save money in your golden years.

And you may be right; there are so many financial benefits to downsizing, but, surprisingly, there are cons, too, particularly in the current housing market and economy at large. But why exactly might downsizing your home for retirement not be worth it in 2024?

Here’s a dive into the current downsides of downsizing.

You’ve Locked in a Low Mortgage Interest Rate

Mortgage rates have been getting steeper over the past couple of years. If you have a low one locked in from before, it could be wiser to hang onto it than to buy a new home at a higher interest rate — even if the home is cheaper than where you live now.

To continue reading the rest of the article, please click on the source link below:

https://finance.yahoo.com/news/housing-market-2024-why-downsizing-140008832.html

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