Downsize and Win Big

Home values have been increasing for 93 consecutive months, according to the National Association of Realtors. If you’re a homeowner, particularly one looking to downsize your living space, that’s great news, as you’ve likely built significant equity in your home.

Here’s some more good news: mortgage rates are expected to remain low throughout 2020 at an average of 3.8% for a 30-year fixed-rate loan.

The combination of leveraging your growing equity and capitalizing on low rates could make a big difference in your housing plans this year.

How to Use Your Home Equity

For move-up buyers, the typical pattern for building financial stability and wealth through homeownership works this way: you buy a house and gain equity over several years of mortgage payments and price appreciation. You then take that equity from the sale of your house to make a down payment on your next home and repeat the process.

For homeowners ready to downsize, home equity can work in a slightly different way. What you choose to do depends in part upon your goals.

According to, for some, the desire to downsize may be related to retirement plans or children aging out of the home. Others may be choosing to live in a smaller home to save money or simplify their lifestyle in a space that’s easier to clean and declutter. The reasons can vary greatly and by generation.

Those who choose to put their equity toward a new home have the opportunity to make a substantial down payment or maybe even to buy their next home in cash. This is incredibly valuable if your goal is to have a minimal mortgage payment or none at all.

As local real estate professionals with the knowledge and experience of working on Cape Cod, we can help you evaluate your equity and how to use it wisely. If you’re planning to downsize, keep in mind that home prices are anticipated to continue rising in 2020, which could influence your choices.

The Impact of Low Mortgage Rates

Low mortgage rates can offset price hikes, so locking in while rates are low will be key. For many downsizing homeowners, a loan with a shorter term is ideal, so the balance can be reduced more quickly.

Interest rates on 10, 15, and 20-year loans are lower than the rates on a 30-year fixed-rate loan. If you’re downsizing your housing costs, you may prefer a shorter-term loan to pay off your home faster. This way, you can save thousands in interest payments over time.

If you’re planning a transition into a smaller home, the twin trends of low mortgage rates and rising home equity can kick-start or boost your plans, especially if you’re anticipating retirement soon or just want to live in a smaller home that’s easier to maintain.

So, if you’re thinking about downsizing, we can to help. Contact us at 508-568-8191 or We can help you review your options; let you know what your home might be worth, and have some suggestions about where you could move.

We’ve started to archive our video postings at our YouTube channel, “Mari Sennott and Assoc“.  You can view samples of the promotional videos we produce for our listings; various informational pieces from KCM (Keeping Current Matters) and other industry resources, plus Hank’s IGTV program “Morning Coffee” and Mari’s series on our kitchen remodeling project.

Mari is in San Diego, CA this week attending the “Elite Retreat” event organized by the Tom Ferry organization.

Ferry is our industry’s leading coach and trainer. The retreat is an intense, two-day session with his top level clients from across the country.

We believe in continuing our professional education and using what we learn to help our clients. In March, we’ll both be attending a “Marketing Edge” conference to learn about the most up-to-date and effective methods to promote the homes and clients we represent.

Enjoy your week…

Mari and Hank

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