Hey Patrick, Good to see you're still doing UA-cam videos! Downsizing is a strange thing. We have a 4 bedroom 2 story and was thinking about it in 2021 since we really didn't need this size house anymore. When we looked at smaller ranchs they all needed work and I couldn't wrap my head around selling my home, buying another and then putting a lot of money into it to get what we kind of have already. I don't like flipped houses so that was out of the question, so we refied and have a 2 7/8% rate ... really cheap money; each time we saved money per month. Well, life gets in the way and luckily we didn't downsize as we had to take in a family member so in the end it all works out. As for rates - if I remember correctly we had a rate when we first bought this house of 8% or more; refied 3X - 6%, 4 3/8% and now 2 7/8%. Between the refi and buying a pool last year we're going to evaluate the situation in 5 - 10 years and see if it's time then.
Who wants to have a mortgage when you're downsizing for your last days? Sell the big house and pay cash with the equity. Add some savings if you have to. That should be the plan.
I think the point is that even if you do that, you may not be able to downsize into a house in an area you want to spend your remaining days. You may very well be priced out.
I downsized. My mortgage is doable, but the INSURANCE AND TAXES are not doable in the long run. I will have to keep working even in retirement to pay that. So I will probably wait until I am ready to fully retire, and sell the house. Move to a less desirable area of the US or move to another country. Living in this area will never be doable because it's so expensive whether you own or rent.
Hey Patrick, Good to see you're still doing UA-cam videos!
Downsizing is a strange thing. We have a 4 bedroom 2 story and was thinking about it in 2021 since we really didn't need this size house anymore. When we looked at smaller ranchs they all needed work and I couldn't wrap my head around selling my home, buying another and then putting a lot of money into it to get what we kind of have already. I don't like flipped houses so that was out of the question, so we refied and have a 2 7/8% rate ... really cheap money; each time we saved money per month. Well, life gets in the way and luckily we didn't downsize as we had to take in a family member so in the end it all works out.
As for rates - if I remember correctly we had a rate when we first bought this house of 8% or more; refied 3X - 6%, 4 3/8% and now 2 7/8%. Between the refi and buying a pool last year we're going to evaluate the situation in 5 - 10 years and see if it's time then.
Who wants to have a mortgage when you're downsizing for your last days? Sell the big house and pay cash with the equity. Add some savings if you have to. That should be the plan.
I think the point is that even if you do that, you may not be able to downsize into a house in an area you want to spend your remaining days. You may very well be priced out.
A very timely and well done video.
Thanks for your great content; it is well done and informative!
I downsized. My mortgage is doable, but the INSURANCE AND TAXES are not doable in the long run. I will have to keep working even in retirement to pay that. So I will probably wait until I am ready to fully retire, and sell the house. Move to a less desirable area of the US or move to another country. Living in this area will never be doable because it's so expensive whether you own or rent.