Is a Smaller Home Right for You?

So, this question is posed. How much space does your family really need? This isn't a simple cut and dry question. Every family has different needs and dynamics.

Let's put things into perspective, though. Having a large, show-stopper home doesn't equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.There are social benefits to sharing tighter quarters. Some families feel that smaller homes forces more together time, which means more time for bonding and strengthening relationships.

Smaller homes mean reduced costs across the board. Let's examine these for a moment. Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one.
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9 Ways You Can Cash In on Your Home

Homes represent the bulk of even a moderately affluent pre-retiree’s wealth, beyond pension and Social Security income. According to research by the Society of Actuaries, only about 20% of homeowners plan to use their home equity to help finance retirement. Of those who do, few have thought about tapping their home's value and simply plan to sell it to generate retirement money.

Home-equity loan

Pulling money out of your home is often not advised if the money is needed for basic living expenses. Lenders also need to be sure you’ll be able to repay the loan. One retirement-friendly use of home-equity loan funds is remodeling, to make your home “senior-friendly” so you can continue living there as you get older.

White House Considers Underwater Refinancing Relief

The White House is considering additional measures to slow the foreclosure crisis and aid homeowners, including a proposal that would allow underwater homeowners to refinance mortgages, despite a lack of equity in their homes.

As many as two million underwater homeowners could be helped under the proposal, which was first offered by California Democratic Senator Barbara Boxer. The effort would remove barriers that have halted millions of upside down homeowners from refinancing and save many additional homeowners from foreclosure.

The provision would remove refinancing limits on homes that are upside down on mortgages or owe more than their home’s current value. The bill gained momentum when a Republican Senator joined Boxer as a co-sponsor. Senator Johnny Isakson (R-GA), who ran one of the country’s largest independent real estate brokerages, joined Boxer to sponsor the proposal in Congress.