Use equity, timing, and assumable loans to downsize without losing your financial edge.

Are you wondering if you can downsize your Phoenix home without losing your low mortgage rate? Downsizing can feel like a financial risk, but there are ways to make the move while keeping your rate intact. I want to share how this can work for you.

Here’s what you need to know.

Understanding assumable loans. Some mortgages, like FHA and VA loans, are assumable, which means a buyer can take over your existing loan and keep your low interest rate. For anyone looking to downsize, this can be a big advantage. It makes your home more appealing to buyers and gives you more options when buying your next place. You might even be able to take over another low-rate mortgage, keeping your payments lower than current market rates.

Using equity to your advantage. If you’ve owned your home for a while, chances are you’ve built up a lot of equity. Selling that equity can cover your down payment and closing costs on your next home. You may even have a little extra set aside for renovations, just in case the smaller place you’re moving into needs some work. It’s a way to make your downsizing move smoother and more financially comfortable.

“With the right strategy, you can keep your low interest rate and make a smooth transition to a smaller home.”

Planning your move. Timing is key. Ideally, you want your purchase contract to line up with your sales contract so you only have to live in one home at a time. That way, you avoid the stress of juggling two mortgage payments. Assumable loans usually take 60 to 90 days to process, which works well when you’re trying to coordinate everything efficiently.

I recommend looking into your current mortgage to see if it’s assumable. Next, plan your sale and purchase with care, making sure the contracts align. Running the numbers ahead of time is important, so you know your move fits both your budget and your long-term goals. Having a clear plan helps the process feel manageable and avoids surprises along the way.

Downsizing doesn’t have to mean losing the financial advantages you’ve worked for. With the right strategy, you can keep your low interest rate, leverage your equity, and make a smooth transition to a smaller home.

If you’re considering downsizing, reach out anytime at 480-267-9368 or send an email to Office@GoodCompanyRE.com. I can walk you through your options, help run the numbers, and make sure the move works for you and your budget.