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Dealing with an Empty Nest? 5 Great Reasons to Downsize into a New Condo There’s a good chance if your children have recently moved out that your home is feeling a lot larger than it used to, and perhaps you’re re-considering the extra space. If downsizing to a condo is on your mind and you’re weighing the benefits of this kind of move, here are some that might make it worth the switch in size.

A Little Extra Money

With the additional money you should be making off the sale of your home, there’s a good chance that downsizing may provide you with extra assets to sock away for retirement, travel or whatever your heart fancies. If you don’t need the money, it might not matter, but in the retirement years a little extra can be of benefit for many.

Minimize Your Costs

Usually, there are many utility and heating costs that go along with home ownership, but by moving into a condo you can alleviate many monthly payments instantly. Instead of paying for every utility, condo living can help to simplify and minimize the amount you owe each month.

Free Up Your Retirement

Often times it may seem like home ownership is the dream, but many people approaching retirement would rather have the flexibility of renting. Because there are limited responsibilities with a rental, it means you can spend the winter months in Mexico without having to worry about who will take care of your home.

A Condominium Community

The great thing about many condo buildings is that they are built close to amenities like grocery stores, drycleaners and restaurants, so you don’t have to worry about venturing far out. It might not seem important if you’re used to driving to the store to make your purchases, but being able to walk might make you a convert to a different way of life.

Forget About The Maintenance

If you’ve gotten used to all of the maintenance that goes into a home, downsizing can be a great relief in terms of the time you’ll be saving. Instead of a lawn to cut or a multi-level home you’re responsible for, you’ll be able to rely on the building manager to do this for you.

It can be comforting to have a home you’ve bought and paid for that belongs to you, but by downsizing you may be able to save on time and significantly lower your living costs.

5, 10, 20 Percent or More? How to Determine How Big of a Down Payment You Need Whether or not you’re new to real estate, there’s little doubt that you’ve heard the term down payment as it relates to purchasing a home. There’s a lot of different information out there in regards to how much this figure should be and it can be hard to determine exactly what the importance of this payment is. If you’re trying to determine the ideal amount to put down, here are some things to consider.

Explaining Down Payments And Why They’re Important

The down payment is probably one of the largest single payments you’ll make for anything, and this is why so many people save for years. When you buy a home, the down payment is the amount of money that goes into the initial home investment, and this is taken off of the cost of the house. In essence, while this money qualifies as an asset, it is tied up in paying off the total cost of your home.

The Differing Amounts For Down Payments

It’s often the case that many figures are thrown around in regards to the ideal down payment percentage, and they generally vary from 3-20% of the home’s cost. If you are paying a percentage on the low side of the scale, this can unfortunately mean that you will have fewer mortgage options and will be stuck with an increased interest rate. The amount you should pay depends on your financial health and purchasing commitment, but the larger the down payment is, the more minimal your monthly payments will be.

Deciding The Perfect Percentage

Saving up 20% of a home’s total price may seem like a lot of time and effort, but this can be the ideal amount to put down. In addition to lowered monthly payments and a better interest rate, you’ll also be able to avoid Private Mortgage Insurance (PMI), which is required if you put down less than 20%. There is no right answer to the question of how much to put towards a down payment, but you may end up spending less in the long run if you can invest more in the beginning.

There are many figures thrown around when it comes to real estate, but the amount of a down payment should be economically feasible for you and enable you to make your monthly payments consistently. If you’re planning on purchasing soon and are looking for home options, you may want to contact your trusted mortgage professional for more information.

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