For many homeowners, the thought of buying a house in cash sounds like a dream—but it might actually be within reach. If you’ve owned your home for several years, there’s a good chance you’ve built up enough equity to make that dream a reality.
Let’s talk about how downsizing could be your next smart move.
What Is Home Equity?
Home equity is the difference between your home’s current market value and what you still owe on your mortgage. As property values rise and you pay down your loan, your equity grows. In some areas, prices have jumped significantly over the past few years, giving long-time homeowners a solid boost in their net worth.
How Downsizing Can Work in Your Favor
If your current home is larger than what you need—or more work than you want—downsizing could offer both freedom and financial flexibility. By selling your current home at today’s value and purchasing a smaller, more manageable property, you might be able to skip the mortgage altogether.
Here’s what that could look like:
- Sell your home for $600,000
- Still owe $200,000 on your mortgage
- Walk away with around $400,000 after closing
- Buy a smaller home for $375,000 in cash
- Keep the rest for moving costs, updates, or savings
Benefits of Buying in Cash
Paying cash for a home has its perks:
- No monthly mortgage payments
- Lower closing costs
- Better position when making offers
- Peace of mind and financial freedom
It also makes budgeting easier during retirement or a major life transition.
Is This the Right Move for You?
If you’re considering downsizing, take a look at your current mortgage balance, recent home value estimates, and what kind of properties you’d be happy moving into. A local real estate professional can run the numbers with you, show you what your home could sell for, and help you explore new options that fit your budget.
You might be closer to owning your next home outright than you think. Message me today to discuss your options.
