Reply to Downsizing when you age or empty nesters?

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[quote=Anonymous][quote=Anonymous][b]I don't understand why having a house being paid off makes any difference to anyone for this decision[/b].  I have seen that comment repeatedly as a reason to stay.

You can obviously decide to sell and buy something else for 100% cash (or hopefully, for less than you sold because you downsize).

I get there is a hassle and expense of buying-and-selling, but I don't see why having a mortgage or not makes any difference assuming you have equity in your house.[/quote]

It doesn't really matter if your house is paid off or not. If you have a mortgage but a lot of retirement savings such that you can pay it every month and still have the lifestyle you want, there's no need to downsize.

If you have a house that's paid off, but you don't have much retirement savings to support yourself, you might want to sell it and buy a cheaper house so you can pay for your living expenses.

That said, having a house paid off does allow you to have to lower retirement savings, since you're not paying rent/mortgage.[/quote]

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