Thinking About Downsizing? Here’s How Your Home Equity Can Work for You

For many Rhode Island homeowners, downsizing isn’t just about moving into a smaller place — it’s about gaining freedom. Whether you want to be closer to family, cut back on maintenance, or simply reduce expenses, one powerful trend is worth noting: more people are buying their next home without taking on a new mortgage.

If you’ve owned your home for a while, you may be in a position to do the same — and you might not even realize it.

Recent analysis from ResiClub of Census data shows that over 40% of U.S. homeowners now own their homes free and clear — an all-time high. That’s 4 in 10 homeowners with no mortgage payment at all.

Here in Rhode Island, we’re seeing a similar shift. Many long-time owners in coastal communities like Narragansett, Newport, and South Kingstown have built significant equity, giving them opportunities to make their next move with less financial stress.

As a homeowner, your equity is your greatest financial tool. If your mortgage is nearly paid off (or already is), selling your current home could give you the ability to buy your next property outright in cash. That means no monthly mortgage payments in retirement, lower financial stress as you age, extra cash flow if you choose a less expensive home, and a faster, simpler transaction when you buy.

National surveys also show that cash purchases are on the rise, especially among Baby Boomers. Buying in cash gives you more negotiating power, more control over your next chapter, and the chance to upgrade your lifestyle while simplifying your costs.

For some homeowners, the idea of downsizing makes sense — but the timing doesn’t feel quite right. Maybe you’d like to wait until next year to sell, or you don’t want to feel rushed into listing and moving all at once.

That’s where creative lending solutions come in. Programs like AnnieMac Home Mortgage’s “Buy Now, Sell Later” option allow you to tap into your home’s equity today so you can purchase your next home as a cash buyer. Then, when the timing is right, you can sell your current property — on your own schedule.

This kind of strategy gives you the best of both worlds: the flexibility to secure your ideal next home before it’s gone, the buying strength of cash in today’s competitive market, and the freedom to sell your current home when it works best for you.

You’ve worked hard for your home — now it’s time to let it work for you. Whether that means downsizing, leveraging your equity, or exploring creative financing like AnnieMac’s Buy Now, Sell Later program, there are more options available than you may think.

If you’re curious about your home’s current value and how it could open doors for your next chapter here in Rhode Island, let’s talk.